6 Ways Retirees Can Negotiate Energy Bills To Free Up Cash

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For retirees struggling to keep up with their rising utility costs, negotiation — along with certain credits and programs — can provide relief. In some cases, it may be possible to free up hundreds of dollars annually with the right approach. 

This can make a big difference for fixed-income households at a time when U.S. consumer prices are up 2.7% on a year-over-year basis, according to government data cited by Reuters. 

Here are six real-world ways that retirees can negotiate or lower their energy bills.

Low-Income Home Energy Assistance

The Low Income Home Energy Assistance Program or LIHEAP, helps low-income households pay their cooling and heating bills. Qualifying households may also receive help with their electric bills and even emergency services during an energy crisis.

Each state has its own income requirements to qualify for LIHEAP, so you’ll have to contact your state office to determine your specific eligibility. 

Weatherization Assistance Program

Each state has a Weatherization Assistance Program office to assist low-income households with home improvements that can lower their energy costs. Eligibility depends on income. The program can be combined with federal programs, such as Supplemental Social Security (SSI) or Temporary Assistance for Needy Families (TANF). 

State Energy Assistance

Some states offer their own relief programs to help struggling households pay their utility bills. Massachusetts, for example, offers a Good Neighbor Energy Fund that can cover a month’s energy bill for qualifying residents with incomes between 60% and 80% of the state median. Arizona, Maryland and other states offer programs as well, according to the National Council on Aging.

Budget Billing and Payment Plans

The National Council on Aging recommended that retirees communicate with their utility providers if they need assistance paying their bills. Many companies offer lower rates of special payment plans to low-income households in need. 

Energy Audit

Some states, such as New York (per the New York State Research and Development Authority [NYSERDA]), offer all single-family homeowners a free energy audit. This can help you identify where your home is wasting energy so that you can improve efficiency and save money on your energy bills.

Shop Around

Depending on which market you are in, you may be able to switch to another service provider and get lower rates. Just as with any important financial purchase, shopping around for service may allow you to find a provider offering lower rates.

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