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I just bought a house. The previous owners were on budget billing for Electric and Gas. I understand the benefit of having the same bill every month, from the peace of mind spectrum. Is this really worth it? Will I pay more over the course of the year if I am on budget billing? If my usage is below the years budget, do they credit you? If I go over the years budget, do I have to pay them back?
I've been using it for gas and electric for quite a few years and like it. If you get too far ahead or behind they will adjust your monthly amount. I don't think you'd be asked to come up with a large lump sum, they won't let it get to that point.
Mine adjusts as we go. So, over the winter I may be paying $50 a month but actually using $120 in gas, but it catches back up with itself over the low gas months in the summer. Now, if we moved in Feb and we were behind, we'd then pay to zero it out.
I like it from a budget perspective. My amount has changed a couple times, but only by about $10 a month (my house set empty a couple months before we moved in, etc).
I do it and it's brilliant. Much smaller adjustments.
You'll pay the same. It makes sense for knowing your payment and having it consistent.
I came out of this past winter with a positive balance on my gas bill. That has never happened before. So my budget billing amount was lowered $15/mo in April.
Doesn't sound like there are any draw backs.
Chicago suburban utilities use estimated meter readings on an every other month basis.Quote:
Originally Posted by Cyclonepride
Gas: estimated usages in late winter and early spring raise the bill, which is bad. You are paying in advance. Over the summer, with low usage, your bill will be small, which is good.
Electric: estimated usages in late fall, winter and spring raise the bill, which is bad. You are paying in advance. Over the winter, with lower usages, your bill will go down, which is good.
The utilities claim the estimation system is needed to even out monthly revenues. That's their way of justifying the pay in advance estimated bills.
Budgetting would eliminate these practices.
it's a way for the utility companies to get you to use more juice - i.e. comfort level, who cares if it is xtra hot, or xtra cold, it will all be the same. just pay as you go.
I don't like the concept because you it hides if you are wasting energy. If you have a house too hot in the winter, you'll see it in a regular bill and can adjust your temperature down whereas with budget billing it's harder to pick up on that.
I understand the whole even budget issue, but to me that's more a matter of self dicipline and anticipating different seasons bills.
Before you go on budget billing, ask the utility company for a history of the previous owners usage, then compare your usage for the same month and determine the difference. Granted, if the weather was drastically different, it will be difficult to tell, but at least you'll have an idea of how much energy the previous owner used.
I am sure you pay more than if you are charged for your monthly usage. The bill is more in your control.