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Started By
Message
1
Posted on 10/17/16 at 4:19 pm to HurricaneDunc
quote:
Well then explain to me how it costs more, partna
They take last year's usage and then add "a percentage" on top of it to account for "inflation" and then divide by 12. There is 0 chance that they just add the amount of inflation to break even.
If you use more than last year, you owe the difference at the end of the year. There are also usually monthly fees (they make free money here) and there are generally termination fees if you have to cut service for something like moving.
All when you could have just paid the dang bill each month.
Over say, a 5 year period, the power company makes more money off of the "budget billing" customers than the "pay it each month no matter what it is" customers.
Another reason why it is expensive to be poor. Sad but true.
Edit: Took out one inaccurate statement
This post was edited on 10/17/16 at 4:22 pm
Posted on 10/17/16 at 4:20 pm to HurricaneDunc
quote:
I live in Texas and it is pretty straightforward. It tells you what your actual bill would be and then what the "level" amount is. The difference positive or negative is spread across 12 months.
It's pretty basic math. You end up "saving" during the summer and paying that balance during the winter. In no way does it cost more. And you can always see what your balance is.
This. I did it when I was in college and couldn't afford any surprise high energy bills.
You basically pay the sum of the previous 12 months, divided by 12, every month. During the summer you'll be paying less, during the winter, you'll be paying more. Yes, there is the chance that you'll end up overpaying based on your history, but this amount will be on your statements and you can end level billing at any time and get the overpay amount as a credit to your account at any time.
Posted on 10/17/16 at 4:32 pm to efrad
quote:
Yes, there is the chance that you'll end up overpaying based on your history, but this amount will be on your statements and you can end level billing at any time and get the overpay amount as a credit to your account at any time.
My online account did exactly this. Based on my pay history, it was roughly 35% cheaper to just pay the bill each. But as you said, your payment history and how much energy you actually use is a big factor.
Most people may be suprised to find out how much keeping a dark house (save one room or a lamp) can reduce the base price of a bill.
Posted on 10/17/16 at 4:37 pm to ShoeBang
quote:
They take last year's usage and then add "a percentage" on top of it to account for "inflation" and then divide by 12. There is 0 chance that they just add the amount of inflation to break even.
Not how mine works. No inflation added. The meters are electronic and read each month.
quote:
If you use more than last year, you owe the difference at the end of the year. There are also usually monthly fees (they make free money here) and there are generally termination fees if you have to cut service for something like moving.
Yes if you use more you have to pay for it. If you use less it builds a credit which lowers the bill. Level billing is more like "smoothed" billing in that you pay a 12 month rolling average. The credit if you have one is rolled into the bill each month. There are no termination fees.
quote:
Over say, a 5 year period, the power company makes more money off of the "budget billing" customers than the "pay it each month no matter what it is" customers.
Again, no. You pay for what you use. It is simply a matter of when you pay for it.
Let me say this is all based on my experience in Texas. I have no idea what utilities do in Louisiana.
This post was edited on 10/17/16 at 4:39 pm
Posted on 10/17/16 at 4:46 pm to HurricaneDunc
quote:
Let me say this is all based on my experience in Texas. I have no idea what utilities do in Louisiana
I'm sure there are differences and I know I could be off on the specifics, but I do know something about business: Any company offering a service like this is not just doing it out of the goodness of their hearts. There is an opportunity to make money by providing a little peace of mind. When you start throwing terms like "estimation" into the mix of a company that is operating without a competitive environment like most power companies enjoy, there is never a time when they lose money on the bill they sent you.
Posted on 10/17/16 at 5:04 pm to ShoeBang
quote:
I'm sure there are differences and I know I could be off on the specifics, but I do know something about business: Any company offering a service like this is not just doing it out of the goodness of their hearts. There is an opportunity to make money by providing a little peace of mind. When you start throwing terms like "estimation" into the mix of a company that is operating without a competitive environment like most power companies enjoy, there is never a time when they lose money on the bill they sent you.
Companies like it when customers pay their bills. If level billing helps people pay their bills on time, that's incentive right there for them to include this feature.
Posted on 10/17/16 at 5:16 pm to efrad
quote:
Companies like it when customers pay their bills. If level billing helps people pay their bills on time, that's incentive right there for them to include this feature.
Exactly. I would imagine the predictability in cash flow is also a plus.
Posted on 10/17/16 at 6:48 pm to Displaced
quote:
I never understood level billing. I just have all mine set to auto pay. I see no need for the payment to be the same every month.
Especially when you wanna post as an OT baller yet the government is paying your bill.
Posted on 10/17/16 at 7:38 pm to Front9Bandit
ITT - a bunch of high school drop-outs who repeat shite they heard at work instead of doing simple math.
Please, someone who saved 30% on their bill by switching back to normal... post pics.
Please, someone who saved 30% on their bill by switching back to normal... post pics.
Posted on 10/17/16 at 9:31 pm to 100851
I have it with Cleco. All they do is take the average of your last 12 bills and charge you that. Nothing is estimated. I did it because my winter bill's can be under $300 and my summer bill's pushing $700+ . It now goes up or down a bit every month but stays at the 350-375 range.
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