Budget billing: it works for us

                             

We signed up for budget billing with our electric company a good number of years back and that is our sole experience with budget billing. 

I like it so much better this way because you are sent the same payment each month.  How does it work?  Well for us, the electric company sends us an averaged payment each month based on past bill amounts.  We know that our payment stays the same every month.  It’s the same during the summer months as it is during the winter months.

Now that being said.  That is not always the case.  If we go above our normal energy use for several months in a row, then somewhere down the road the electric company will charge us a higher payment.  That has happened before during the hottest months of the year and of course, our energy use climbed higher.  So then the electric company accounted for the energy use and thus, adjusted the payment to a slightly higher one.

I was able to get my averaged payment down once before.  I attempted to cut my energy bill by NOT using the dryer during the summer months.  I found out that I could save about twenty dollars a month on electricity by hanging my clothes outside to dry versus using the dryer.  So my average payment dropped considerably for so many months until I couldn’t keep up the effort.

Our payment for electricity this month is $98.00.  And it has been this amount for many months now. As you can see in the picture, that we actually used more energy this month.  In dollar terms, we went over the $98.00 budgeted bill amount.  So hopefully, we can get our energy use down so the payment will not increase. 

I am interested in hearing if anyone has been able to decrease their budgeted payment on electricity.  Tell us how you did it!! Or maybe you have experience with budget billing with a company other than an electric company. We would love to hear from you as well.

For more Frugal Friday tips, please visit Biblicalwomanhood.

Charlotte

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2 Responses

  1. We have done this for years and I agree that it is a great way to budget. All of our bill, gas, water and electricity is on one bill. We have been able to lower our budgeted amount a couple of times but not too often. I have 5 people on average in my house showering, drying hair and doing laundry so we use lots of water and power.

  2. I am currently on budget billing and I love it. My budget bill has been the same amount for me for about six months. The only way I know of getting a budget bill amount to go down is to have your Total Difference be in the amount of $0.00. That is what my electricity company told me. The easiest way for me to do this is reduce the amount of electricity that I use in the summer to make up for the amount of electricity that I will use in the winter. I decrease my electricity use between May and early September so that when the colder months hit me my bill won’t go up.

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