Can You Get Money Back on Your Utility Bill If the Power Goes Out? Here's What to Know

Utility outages or disruptions in your cable and internet services aren’t just inconvenient; sometimes they have real consequences. That’s especially true when you lose electricity, heat, or water for even a short amount of time. Aside from getting through the outage itself, there are some ways homeowners can recoup their losses. 

“Utility and service providers have varying reimbursement policies for service disruptions during power outages,” says Brandon Young, CEO at Payless Power. “Internet and cable providers may be more likely to offer credits for outages lasting a day or longer.”

We talked to experts to find out how you can be reimbursed for unavailable services and outages.

What’s Covered by Providers

Because utilities are billed differently from cable and internet services, the refund policies vary. Here’s what is typically covered for each service. 

Utility Outages

Utilities don’t typically provide refunds. Electricity, water, and gas are typically billed based on your usage. 

“For power outages, most companies bill based on usage at the end of every month, so there are no refunds, but customers aren’t charged for power they don’t use,” says Chili Palmer at HighSpeedInternet.com. You won’t typically need or receive a refund for these services. 

“Electric utilities typically do not provide reimbursements for lost electricity, as electricity is not consumed or charged during an outage, and contracts often classify outages as unavoidable events, especially those caused by weather,” Young says. “Consequently, since no consumption or charges occur, there is no reimbursement to issue.”

Exceptions for Loss of Crucial Utility

If you feel you’ve been without a crucial utility—you didn’t have heat during a severe cold snap, for example—you might be able to receive some compensation from the provider. 

“Some utility companies offer automatic credits or payments for extended outages, especially those caused by severe weather,” says Heather Eason, founder and president of SELECT Power Systems. “For example, PG&E’s Safety Net program provides payments of $25 to $100 for outages lasting 48 hours or more due to storms.”

Compensation for Lost Food or Meds

Eason adds that some utility companies also compensate for food or prescription medications lost due to lack of refrigeration if an outage lasts for a certain period of time—up to 72 hours or more, for example. 

In other cases, you might need to go through your homeowner’s insurance for these types of reimbursements. 

“If the outage was caused by a covered event such as a lightning strike, windstorm, or other covered peril, your insurance policy might cover the cost of spoiled food, lost business, or even hotel expenses if your house became uninhabitable,” Palmer says. 

Cable, Internet, and Phone Outages

Unlike public utilities, cable and internet services are usually billed on a monthly basis. Users pay a flat fee for their services each month, and this is sometimes charged in advance. 

If you have a day or more of interrupted internet, cable services, or landline phone services, you’re owed a pro-rated amount for the days when you weren’t able to use these services. 

“Usually, [outages] have to be widespread and last a certain amount of time,” Palmer says. “Refunds typically amount to about one day of the service cost, so about 1/30th of the total bill before taxes and fees. That’s usually a few dollars. Other companies offer automatic refunds only to businesses, so residential customers are out of luck.”

Documenting an Outage

In any case, you need to provide thorough documentation of the outage to receive a refund. To do so, keep track of all notifications of storms or outages in your area. 

“I always advise people to save a copy of the outage start and stop times, and to call customer service as soon as possible after you’re able to do so safely,” Young says.

You also have to be proactive about seeking a refund. “Most provider credits are not automatic. You’ll likely have to call them yourself,” Young says. You can try calling by phone or contacting your provider online. 

“A handful [of companies] have live chat or text available that can make this process faster than you having to call and wait,” Young adds. “If you’re not sure, go on your provider’s site. Some even have special webforms you can use for requesting credits on outages.” Be sure to have key documentation handy. 

Types of Documentation

“When you are submitting a request for a credit, have your account number ready and the day and time when the interruption occurred,” Young says. “If possible, include a screenshot of your interruption notice or a letter from your local utility stating that the service was lost. Anything that can demonstrate you were affected can advance your case quicker.”

If your provider agrees to credit you, it might take between 30 and 60 days to see a credit on your account. If you don’t, follow up. 

When Claims Are Denied

“If you’re declined on your credit form, don’t panic,” Young says. “Request to have your case re-visited, have your documentation readily available, and insist on going by whatever method available, telephone, email, and even social media. Organizations react better when there’s a visible paper trail. The key is to stay polite, organized, and consistent.”

Your claim may be denied because many providers explicitly state in their contracts that they won’t provide credits for outages, especially in the event of weather-related incidents, Young says. “These provisions are common, so take a glance at your Terms of Service before filing a claim,” he cautions. 

When it comes to documenting outages related to utilities, Eason suggests similar documentation techniques for your homeowner’s insurance company, which may or may not cover your damage and losses.

“You may need to provide your insurance company with documentation such as photos of spoiled food and an itemized list with estimated costs. Remember that with homeowners policies, deductibles and limits on compensation usually apply.”