Most homeowners use a steady and predictable amount of electricity when the weather is pleasant, but since heating and cooling are some of the most energy-demanding elements of a home, residents see sharp spikes in energy use during exceptionally cold or exceptionally warm months. Even when energy efficiency measures are taken to heat and cool the home more effectively, the volatility of the electric bill leaves some homeowners frustrated.
Fortunately, there are alternative strategies homeowners can use to reduce electric bills for energy-intensive months. For instance, many electricity suppliers offer a budget billing plan to help you reduce your electricity bill.
In a budget billing plan, your electricity supplier will monitor and review your electricity usage history, then comparing it to expected fluctuations in energy prices. Eventually, they will formulate a budget amount that will be used to generate your electricity bills throughout the budget period—which is usually quarterly or annually.
The amount will be very consistent over the course of that period, allowing you to budget reliably. At the end of the period, the electricity company will review your actual usage compared to your expected usage, and will either bill your or reimburse you for any amount that is over or under the original estimate.
Budget billing isn’t for everyone, and it won’t lower the total cost of electricity, but it will help you plan for demanding months and pay an even amount throughout the year.
If you’re interested in alternative ways to save money on electricity, stay tuned to Star Energy Partners Insights. You’ll find little known tips and long-term strategies you can use to reduce your electric bill and decrease your total energy consumption.