You may initially think that’s a bad thing. This is where it gets a bit more complicated. Once the initial average bill is determined it is then evaluated and adjusted each month. In this example (a typical usage pattern for residents in the southern US), customers with average billing would pay more in the winter and less in the summer compared to someone who pays for actual usage monthly. If you haven’t lived in your house for the entire prior 12 months, most companies will use the historic meter data from the property combined with your current electricity rate to calculate an average bill.Īs you can see in the above example, in average monthly billing you’ll pay more for the electricity you use in some months while paying less for it in others. That average monthly electricity usage is multiplied by your current electricity rate to determine your average bill.They divide that sum by 12 to get an average monthly electricity usage.They add up the past 12 months’ historical kWh usage.The goal of average monthly billing is to have 12 bills each year that are as close to identical as possible. By using average billing, you should be able to have a predictable electric bill similar to your other monthly expenditures like rent, mortgage, or car insurance.Įlectricity companies use a formula to determine the amount you pay each month. Ideally, this should result in a predictable electricity bill each month. But is average billing for electricity worth it? It depends. Also known as budget billing, average monthly billing, or balanced billing, average billing aims to smooth out the bumps in your monthly electric bill. This also means having months where the electric bill can be as much as twice the normal amount in extreme weather.Įlectricity providers have created a system that attempts to solve this problem: average billing. No matter where you live, there will always be fluctuations in the amount of power you use and pay for each month.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |