Budget billing is a payment plan with your utility company to even out your monthly bills throughout the year. Although it sounds like a great idea, there are some disadvantages.

  1. Administrative fees – Some plans charge administrative fees which add to the total cost of your monthly bill.
  2. Fuel assistance – Low income customers who would normally qualify for fuel assistance to help with energy bills may not qualify if they use a budget billing plan.
  3. Balance due – If your energy bills for the year exceed your monthly payments, you will be required to pay the balance due. This defeats the purpose of budget billing and creates a real hardship for some customers on fixed incomes.
  4. May not be eligible – All budget billing plans are different but some may require a minimum 12 month billing history with the current utility company. If you recently moved to the area or have a bad credit history, you may not qualify.
  5. Strict payment rules – There is little patience for delinquent payments under most budget billing plans. Paying your bill late may result in being disqualified from the budget billing plan or having your power shut off.
  6. Quarterly adjustments – Some utility companies will adjust the monthly budget billing amount on a quarterly basis, so if you were planning your budget on a set amount for the full year be wary, it may change.
  7. May not get refunded – The hope is that if your payments exceed the amount of power used throughout the year that you will get a nice refund. Depending on your contract, that may not be the case.
  8. Moving – Depending on the timing and terms of your contract, there could be complications and extra fees if you plan on moving.
  9. Complicated contracts – Make sure you read the contract very carefully and understand all the terms and conditions.
  10. No Savings – While budget billing will even out your monthly bills you will still end up paying the same rate for your energy use as you would have if you were not signed up for budget billing.

The only way to truly lower your utility bills would be by enrolling with a Registered Energy Supplier like Realgy Energy Services. Check out Realgy Energy Services rates for June 2012 and see how much you could be saving www.realgyenergyservices.com

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