I can stop paying my electricity bill in november and our state's utility companies CANNOT cut me off until the spring, because without heat I would literally die in Maine. There are similar laws for gas utilities.
I can have a billion dollar bill with Verizon, but if I dial 911, they are legally obligated to connect me to emergency services.
Also, ask people who work for utility companies how well any of this works to actually compel payment from the kind of people who are good at abusing debt.
Answer: Fucking not at all. My brother worked for the cable company, rather limited regulation in terms of requiring the company to continue servicing someone who was delinquent. 95% of his job was still disconnects, often involving someone showing up to the door with their rifle to make a point.
This idea that the world is so full of structures and systems to protect people is going to be wrong going forward. Person with big stick wins, and instant evictions are good - and your refusal to consider why they would be good is why trump and MAGA are popular and getting more popular.
If you lose a job and miss a paycheck this month, maybe you need an extra month to get back on your feet. If you lose housing right away, it's gonna be harder to find a job ("why is your suit wrinkled? why do you smell like you haven't taken a shower in a week?"), which makes it harder to get an apartment that would stabilize things.
We have safety nets so the smallest bump doesn't shoot you right to the bottom.
It shouldn't be indefinite, and the problem is finding how many months of friction should exist before we reach "this aint gonna get better", but instant-cutoff quickly becomes a feedback loop of shit.