DNP and Disconnection Notices: What Do They Mean?

In this blog, we'll explore what triggers a disconnection, a legal notice you’ll receive before it happens, and how missed payments can affect your financial standing. We'll also explain how Energy Ogre can help you manage your account to avoid disconnection in the first place.

In Texas, the power to choose your retail electricity provider (REP) comes with the responsibility of staying on top of payment deadlines and avoiding disconnections. While electricity disconnections may seem like a worst-case scenario, they are governed by strict rules set by the Public Utility Commission of Texas (PUCT or PUC). 

These rules require REPs to provide adequate warning before cutting off service. However, understanding the reasons for disconnection, the timeline involved, and how it may impact your credit can be crucial in preventing these disruptions.

When Does My Power Get Disconnected, and How Long Does It Take?

What causes a disconnection?

In Texas, electricity disconnections are governed by rules set by the PUCT. A disconnection, also known as "DNP," standing for “did not pay," can occur for several different reasons.

The most common occurance is when a customer fails to pay their electricity bill, no matter how small the amount owed is. Other reasons can include:

• Failure to comply with the terms of a deferred payment arrangement or other payment agreement made with the REP
• Using service in a manner that interferes with the service of others or the operation of nonstandard equipment
• Failure to pay a deposit required by the REP
• Failure of a guarantor to pay the amount guaranteed when the REP has a written agreement, signed by the guarantor, which allows for disconnection of the guarantor's service

Are you warned before disconnection?

Your REP will definitely alert you of missing payment(s) and potential late fees immediately if a bill becomes past-due. Starting the day after your unpaid bill’s due date, you will also be at risk of being sent a legally required notice. 

According to Elle Pryor, Escalations Manager at Energy Ogre, "The day after the bill due date is the earliest a REP can issue a DNP notice. However, depending on the lenience of the REP, some can take up to a few weeks to actually be sent."

For best understanding, below are the official rules as they appear on the “Know Your Rights” PUCT webpage:

Prior to disconnecting your service, your REP must provide you with a disconnection notice. This notice must be mailed to you separately (or hand-delivered) no earlier than the first day after the date your bill is due, or, if the REP has offered and the customer has agreed to receive disconnection notices from the REP by email, be a separate email with the words “disconnection notice” or similar language in the subject line. 

The disconnection date must be 10 days from the date the notice is issued and may not fall on a holiday or weekend (or the day preceding) unless the REP's personnel are available on those days to take payments or make payment arrangements and service can be reconnected.

It’s also important to know, like the disconnection notice, that not all REPs send a disconnection order to be executed right away after the 10-day disconnection notice period ends. Some may take longer due to customer volume and/or priorities set within that company. But, most likely, the REP will send the disconnection order to the TDSP as soon as possible.

Please be mindful of two commonly confused terms that have entirely different meanings:

• Disconnection Notice: A legal notice that a customer’s power will be disconnected at the earliest 10 days after the notice is mailed if the balance is not paid.
• Disconnection Order: The request a REP sends to a TDSP to have a customer’s power turned off starting 10 days after the disconnection notice was sent.

My power is already disconnected. What should I do?

If your power has already been disconnected, pay your past-due amount with your REP. Once paid, your power will be turned back on within 4-6 hours, weather conditions and TDSP workload permitting.

If you are an Energy Ogre member, you can call us at 832-975-1000, and we will assist you in paying your outstanding balance and can contact your TDSP to make sure your power restoration order is in their system.

Does a Disconnection Affect My Credit?

A disconnection itself (or any previous type of late payment notice or fee) does not directly impact your credit score. However, there are some indirect consequences to be aware of:

• Non-payment report to credit bureaus: While REPs are not typically reporting non-payment directly to credit bureaus like traditional lenders (e.g., banks or credit card companies), if you have an outstanding balance that goes unpaid for months, it can eventually be sent to collections.
• Collections: Once your REP has disconnected your service location and the final bill balance remains unpaid for around 60–90 days and you have not made satisfactory arrangements to pay, the REP may turn your account over to a third-party collections agency. Collections activities can significantly damage your credit score, often for years. 

Each REP has its own policies on when to send accounts to collections, but the general rule is that after multiple late notices, phone calls, and letters, an unresolved balance may be referred to a collection agency.

For more information on late fees, credit effects, and collections, take a look at our blog, “Past Due Electricity Bill? Will That Affect Your Credit?” featuring our Director of Automated Operations, Jane Lobo.

How Energy Ogre Prevents Disconnections

Now you may be wondering, “What does Energy Ogre do to prevent our members from disconnection issues?”

According to Pryor, “We can detect owed balances and generate tickets that tag the contract to send a notification email to the member," she stated. “We may also get lists from certain REPs for members who are nearing disconnection and will review those accounts to manually add a member notification tag. Or, if the member is on auto-pay, we will attempt payment with the card on file, and if it fails, we will send notice to the member to update their auto-pay card to make sure the balance can be settled.”

And as always, feel free to give us a call at 832-975-1000 if you’d prefer to resolve things by phone. Email is not preferred in disconnection-related situations because it is extremely time-sensitive.

Conclusion

While the competitive electricity market in Texas offers consumers the flexibility to choose their REP, it also requires diligence in managing payment deadlines and understanding the consequences of missed payments. A disconnection, although preceded by clear notices, can be costly both in terms of service interruption, immediate late fees and penalties, and long-term financial impacts, especially if the balance is sent to collections.

By staying informed about the disconnection process, paying attention to deadlines, and taking proactive steps to address any issues with your REP, you can avoid unnecessary stress and financial setbacks. Energy Ogre can also help monitor your account and alert you before disconnection notices are issued, offering additional peace of mind. Ultimately, the best way to protect your service and your credit is to stay on top of your payments and communicate with your REP or Energy Ogre when challenges arise.

Other Articles:

• Paying Your Electricity Bill: How You Pay Matters
• Past Due Electricity Bill? Will That Affect Your Credit?
• How LaTina Stopped Worrying About Her Electricity Bill