News

The biggest mistakes people make in looking at their power bill

Arbor breaks down the biggest mistakes people make when looking at their power bill and how to avoid them. (Mehaniq // Shutterstock/Mehaniq // Shutterstock)

For most people, opening their power bill is about as exciting as watching paint dry—until the number at the bottom makes their heart skip a beat. But here's the thing: If you're only paying attention to that total amount due, you could be missing critical details that impact your wallet. Arbor breaks down the biggest mistakes people make when looking at their power bill and how to avoid them.

Ignoring the Breakdown of Charges

Your bill isn't just one big number; it's a collection of smaller charges. Skimming past those details can cost you. Common line items include energy supply, delivery fees, taxes, and sometimes unexpected surcharges.

Fix it: Take a few minutes to review your bill line by line. Notice if supply rates or delivery fees have increased compared to previous months. If something looks off, reach out to your utility provider for clarification.

Focusing Only on Monthly Totals

A sudden spike in your bill might feel like a one-time anomaly, but patterns over time tell a more valuable story. Seasonal changes, rate hikes, or even changes in your household's habits can explain those increases.

Fix it: Keep a record of your bills for several months (or check your provider's online portal) to track trends. This can help you spot when and why your bills increase and plan accordingly.

Overlooking Your Rate Plan

Not all rate plans are created equal. Some are fixed, some are variable, and others are time-of-use—and each affects how much you pay for the same amount of energy. Staying on the wrong plan can cost you hundreds.

Fix it: Check the rate plan listed on your bill. If it's unclear or doesn't fit your usage habits (e.g., you're on a variable plan and your rate keeps climbing), it might be time to switch plans or shop for a new supplier.

Missing Hidden Fees

Many bills include charges like "service fees," "transition charges," or "system benefits charges." These aren't always explained clearly, but they can add up fast.

Fix it: Don't be afraid to Google unfamiliar terms on your bill or ask your provider for a breakdown of fees. Understanding what you're paying for is half the battle.

Overestimating the Impact of Small Habits

You might think unplugging your phone charger or turning off one light will significantly lower your bill, but the truth is, bigger changes—like upgrading appliances or adjusting your thermostat—have a far greater impact.

Fix it: Focus on changes with the highest return, like sealing drafts, using energy-efficient appliances, or optimizing heating and cooling.

Not Shopping Around for Better Rates

In many areas, you have a choice of electricity providers. Sticking with your default provider's rates may mean you're leaving money on the table.

Fix it: Use a service like Arbor to find the lowest rates in your area. It's quick, easy, and can save you hundreds annually.

Forgetting to Check for Errors

Utility companies aren't perfect, and billing mistakes happen more often than you'd think. From meter reading errors to incorrect charges, these mistakes can inflate your bill.

Fix it:  Review your usage against what's listed on your bill. If something doesn't add up, call your provider to dispute the charges.

Neglecting Energy Usage Comparisons

Most bills include a usage comparison chart showing how your energy consumption compares to the previous month or the same month last year. Ignoring this data leaves you blind to trends that could explain higher costs.

Fix it:  Pay attention to usage trends. If your consumption has jumped without a clear reason, it might indicate an issue like a faulty appliance or inefficient HVAC system.

Skipping Rebates and Incentives

Many utilities offer rebates for energy-efficient upgrades or incentives for reducing peak-time usage. If you're not checking for these, you're missing out on free money.

Fix it:  Check your provider's website or call them to ask about available programs. Take advantage of these opportunities to offset costs.

Your power bill holds a wealth of information that can help you save money, but only if you know what to look for. By avoiding these common mistakes and taking control of your energy costs, you'll spend less time stressing over your bill—and more time enjoying what your electricity powers.

0
Comments on this article
0

mobile apps

Everything you love about krmg.com and more! Tap on any of the buttons below to download our app.

amazon alexa

Enable our Skill today to listen live at home on your Alexa Devices!