Ignoring Rate Changes on Your Utility Bill Can Cost You $480 a Year
Written by
Brooke Barley
Edited by
Zuri Anderson
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Whether it’s having our bills on autopay or simply being too busy to check every charge, we can miss charges on utility bills. Without that diligence, utility bills can go up by almost $500. That figure is based on the typical American’s electricity usage of 900 kWh/month and a rate of $0.20/kWh.
Here are the common changes you’re missing to your bill. Looking for these can help you stay under that rate of $0.20/kWh and help you save hundreds.
Your Introductory Rate ExpiredÂ
Often when you start paying for electricity at a new residence, the electric company will give you a discounted introductory rate. That can be as low as $0.155/kWh. That can help you save hundreds a year as opposed to $0.20/kWh.
More than likely, however, the electric company is not going to notify you when this rate expires. Be sure to check each of your bills thoroughly to see when your rate expires. You can always try calling the electric company to see if you can receive an extension of the discounted rate.
You’re Staying on Standard Offer Pricing
Standard offer pricing typically means you’re being charged the same price for every kilowatt-hour, no matter the time of day. Some customers may find they save money by switching to time of use plans, which charge more for electricity use during peak hours (usually 4 p.m. to 9 p.m.) and lower prices at night or during the early hours of the morning.
This can be especially beneficial if you switch high energy activities like laundry and using the dishwasher to off-peak hours.
There’s a Seasonal Increase
Sometimes, you can’t really help the increase on your electric bill. In times of extreme heat or cold, you’re going to be relying more on the heater or AC to keep you comfortable.
Usage will cause your electric bill to go up, but hopefully by staying diligent, you will have lowered your bill during other months, so these jumps in pricing don’t hurt your bottom line as much.Â
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