Your electric bill may make up a large part of your monthly budget, and it’s important to keep a close watch on it. But while your large expenses like rent or mortgage stay the same each month, your electric usage does not.
Hot summer days and cold winter nights can lead to big swings in your electric bill, and you can’t always predict the total each month. Or can you? Budget billing may offer the consistency you’re looking for.
What is budget billing?
Budget billing is a service offered by South Central Power that provides a set monthly bill based on the average usage of the last 12 months.
How does it work?
Members who have 12 months of good pay history with South Central Power may participate in the budget billing program. The account must be at a zero balance before being placed on the budget billing program. The program is open to residential accounts only.
To calculate your monthly budget billing amount, our billing specialists will look at your usage over the past year and average it to determine your monthly charge. This will give you a predictable bill to pay each month, rather than one that fluctuates.
South Central Power recalculates budget payment amounts each May and October using the average usage of the past 12 months. Your meter will still be read monthly and bills will show your actual energy costs, but you will be asked to pay only the budget payment amount — whether it is higher or lower than your actual amount to keep your costs in line.
What are the benefits?
While it doesn’t necessarily save you money, budget billing may allow you to more easily manage your monthly budget. For example, if you know your monthly electricity bill will be $100, you can account for that cost in your budget and better allocate your hard-earned dollars into other expenses or savings.
Combine budget billing with autopay and you can set and forget your electric bill, ensuring that it’s paid on time and in full, making meeting your budget a lot easier.
From the December 2023 issue of Ohio Cooperative Living.