I just started a new residential service plan and the electricity company asked me if I would like to enroll in the monthly average plan, whereby they bill you based on the previous 12 months usage at that address. Your average changes with each months usage, but you're only charged that average. At the end of the 12 month cycle, you're billed whatever amount was deferred each month because it was above the average. Has anyone else enrolled in this? Was your 12th month bill outrageous? I'm trying to decide if it is a good plan for me, a single broke college student!
2007-06-21 10:53:57 · 7 answers · asked by Rachel J 2 in Home & Garden ➔ Maintenance & Repairs
We have been on this plan for several years. The utility company chooses how much energy they estimate you will use over an entire year and divide by 12 to determine your monthly payment. For us, the last bill is typically very small, or in some cases they owed us money back. The catch is that they make the monthly rate a bit higher than it needs to be so they can collect more money up front and therefore make money on the interest.
However, for someone on a tight budget or fixed income it is very nice to know exactly what your payment will be from month to month. That convenience makes it worthwhile for us.
2007-06-21 13:52:09 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I used the budget billing plan (same concept) for my gas bill at two of my previous rentals. They were good for me because the winter bills here are way higher than summer since our winters are so cold, so this plan prevented an outrageous winter bill, and left no surprises for me. Fortunately, I am frugal and ended up getting a check (or credit to your account) when I moved because I ended up using less than the previous average. I never had to guess what my bill would be, and that was nice. My new rental now has a high average, and I think that I will end up paying less, so I chose to not use the budget billing/average per month payment. These plans do not gyp you out of any money, they are just meant to help you with bills, so there are no surprises or extreme fluctuations on your monthly bill. Hope this helps.
2007-06-21 11:01:37 · answer #2 · answered by Bedelia 2 · 0⤊ 0⤋
Monthly average billing is only good if you need to budget a set amount each month. Over a year, you will be spending the same amount weather you do so the the same size chunks, or if you do it in different amounts each month. A monthly bill will help you remember to conserve. If you have a set amount each month, and your income is a set amount each month, this is the best way to go.
Most utility companies require you to have at least a one-year history in the dwelling before they will do budget billing. I have yet to hear of any college student living in the same place for more than 9 months at a time.
2007-06-21 14:34:36 · answer #3 · answered by OrakTheBold 7 · 0⤊ 0⤋
Your electric bill is determined by how low you set your thermostat, other electrical gadgetry you use, whether you keep you shades, drapes, blinds open or closed, if you use your oven and stove a lot each day, etc. Two people in the same size house or apt can have a monthly difference in their bills exceeding 100.00! In the summer, people here don't use heat-generating appliances too much. Cooking out helps, as does limiting electronics. Lots of furnishings hold the heat.Fans help, but they use electricity too! In short, your bill is what YOU make it! The less space, the less junk and the faster you can adapt to the heat and dryness will help your bill!
2016-05-17 05:31:15 · answer #4 · answered by ? 3 · 0⤊ 0⤋
yeah but I just got the new meter instead that charges you less money for using the electric off of peak hours, was a better deal
first because you would need to show 12 months already so they have some type of reference
2007-06-21 10:58:00 · answer #5 · answered by rich2481 7 · 0⤊ 0⤋
No matter who you are,no matter where you live, you need elec. for water heaters,cooking, heating,etc. Think if you like long showers,baths, will you use your gas grill, or do you have a gas stove, or is it elec. Will you heat with elec? Do you like it really warm,etc. The 12 month deal is great. And no I never had a large bill in the payoff month.
2007-06-21 11:00:06 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes but be careful cause they can raise it when they want,if you useage goes up sometimes so will the rate, can save you in the winter time and then you can get caught up in summer time
2007-06-21 11:48:22 · answer #7 · answered by kmar61 2 · 0⤊ 0⤋