Why did my electricity bill go up?

March 10, 2021   By Caitlin Cosper

Why did my electricity bill go up?

If you’ve asked yourself this question before, you’re not alone. In a deregulated energy market such as Texas, your electricity bill can be anything but straightforward. SaveOnEnergy® is here to help answer your most common energy-related questions.

So, why are you being charged more this month for electricity? Here are a few factors that could be affecting your bottom line.

You’re in a variable-rate energy plan

It’s important to understand the type of electricity plan you choose when shopping around. Variable-rate plans may seem appealing at first glance, but they come with risk.

With a variable-rate plan, the supply rates you pay on your electricity bill each month can fluctuate depending on the wholesale cost of electricity and other factors. This means you won’t be protected from spikes in the market when demand goes up (which is what happened to many consumers during the Texas winter storms).

If you’re in a variable-rate plan and experience high electricity bills, there is a silver lining. Variable plans don’t come with a contract length, so you can switch to a new plan at any time without having to pay an early termination fee. A fixed-rate plan would ensure you know the exact supply rate you will pay on your bills regardless of market changes.

Interested in exploring fixed-rate plans in your area? You can enter your ZIP code here to compare your options.

You’re using more electricity than last month

One of the quickest ways to run up your utility bill is by using a lot of electricity. The good news is this – conserving energy is one of the quickest ways to lower your bill. There are several ways to do this, whether it’s investing in energy-efficient appliances, changing your consumption habits, or taking advantage of seasonal changes.

For a closer look at how you can save energy and lower your monthly bills, see the installments of our energy-saving series below:

If you’re unsure about where you’re using the most energy, you can check your home’s smart meter. Most Texas homes have a smart meter, which connects to your home network and stores data within 15-minute intervals. Smart meters can give your consistent and reliable readings on your energy usage and provide insight into when and where you could reduce your energy consumption.

Your energy plan isn’t right for you

Sometimes things just don’t work out. This can be true for your energy plan, too. Whether it’s because of the plan type, rate structure, or your household’s needs, a new plan could be the answer to lower bills.

Thankfully, finding the right energy plan for your home doesn’t have to be complicated or overwhelming. But before you begin shopping around, you might want to consider what your priorities are in an energy plan. Are you interested in a green energy plan? A plan that offers free nights or weekends? Looking for a specific energy provider? Or maybe a no-deposit option? Figuring out what aspects work best for you can help narrow down the different providers, plans, and rates.

Once you’ve figured out your top priorities, you can compare and sort between available options in your area with the SaveOnEnergy marketplace. At no cost, you can filter between providers, term-lengths, rate types, green energy, provider ratings, and more. When you’re ready, simply enter your ZIP code to check the options available in your area.

 

Caitlin Cosper is a writer within the energy and power industry. Born in Georgia, she attended the University of Georgia before earning her master’s in English at the University of North Carolina at Charlotte.

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