Are you on a budget billing cycle with your power company? This means you pay one set amount every month, regardless of the amount of power you use in that month. The amount you pay is figured by the power company based on your previous year’s useage and they take the average monthly number.
We found an interesting article at We Use Coupons in their Frugal Tips section today explaining why the budget plan may not be the best solution. Take a peek at 10 Disadvantages to Budget Billing for Power Bills.
What are your thoughts? Have you had any experiences with budget billing that you would like to share?
We use the “Equal Monthly Payment” plan with Consumers and really like it. Although you do have to be careful as the writer suggests. The first time Consumers underestimated the monthly costs and we were left with a whopping bill at the end of the cycle. I called and had them raise the monthly amount we needed to pay. Whenever (of IF) they try to lower it I call and ask them to keep it the same as we had it. It’s been years and it’s worked out great for us. I like knowing exactly what the amount will be each month and I don’t get any “surprises” – especially in the winter.