The arrival of an energy bill may be causing people more worries than usual at the moment.
Energy costs in the United States were 32% higher in March 2022 than last year. As a result, some people are seeing higher energy bills than expected, even if they are being careful with their energy usage.
The good news is that you can learn how to save on your electric bill, which doesn’t just mean reducing your energy use. As consumers, there’s much you can do to protect yourself from nasty utility bill surprises.
If you’re unhappy with your energy bill, this guide will help you. From questions to energy consumption to how to complain when something goes wrong, you’ll find answers here. Our specialty is electricity usage, so we’ll concentrate on electricity use for the Texas area we cover.
Why Are You Unhappy With Energy Bills?
Texas has a deregulated electricity market. That means around 85% of Texan residents can choose their electricity supplier. The remaining population is served by a utility company or assigned a supplier by the Public Utility Commission of Texas (PUC or PUCT).
If you can choose your electricity company, you can sign up for one of three electricity plans:
- Variable-rate plans: These fluctuate according to the market, meaning electricity prices (and electricity bills) can go up and down.
- Fixed-rate plans: These plans maintain the same electricity price throughout the contract term. People pay a predetermined rate for the electricity they use.
- Indexed-rate plans: These types of plans operate similarly to variable-rate deals with changing electricity prices linked to a publicly available index.
Recent surges in energy prices have meant many households on variable-rate and indexed-rate plans have seen rises in the cost of the electricity they use. This has led to higher electricity bills, for the same amount of energy use.
Conversely, people on fixed-rate contracts have enjoyed the security of paying the same price for their electricity, protecting them from the energy price spike. Fixed-rate deals offer consumers peace of mind, knowing exactly how much will need to be paid based on energy usage.
Why Has My Energy Bill Suddenly Risen?
The rise in energy prices may not be the only reason homeowners receive higher energy bills.
Many people receive varying energy bills because of their lifestyle or where they live. The cooling costs of using an air conditioner during those sweltering summers in Texas add up. Winter months mean turning the lights on earlier and higher home heating costs.
Other reasons for higher energy bills include:
- Higher use of HVAC systems for heating or cooling a home
- New energy-hungry appliances at home
- More people living under the same roof
These increases relate to energy usage. Other explanations are:
- A lack of regular meter readings could mean your utility bill is based on estimates and not accurate information
- Your meter may be faulty and supplying incorrect information to your electric company
- Your electricity company has raised its prices
- Your current electricity deal has ended, and you have been transferred to a different and possibly more expensive electricity rate — this can happen to households on any plan type
Can I Stop Increases in My Variable-Rate Plan?
Electric companies charge for electricity in kilowatt-hours (kWh). The kilowatt-hour price of variable-rate plans changes depending on the current market rate. In February 2021, the average price people paid for residential electricity across the United States was 13.35 cents per kWh, compared to 13.83 cents in February 2022.
If you have a variable-rate plan, you cannot stop the variable rate from changing. However, you might be able to change your plan. Just be aware that you may have to pay an early exit or termination fee depending on your contract terms.
How Do You Know if You’re Overcharged With Electricity?
The first thing to do is dig out your electricity contract and go through the details. Find out what type of deal you have, when and what happens as it runs out, and check your normal energy usage levels.
Look for any new charges or if you have been the victim of slamming, where unscrupulous companies switch you to a new contract without your authorization or knowledge. Cramming is when firms add extra services to your bill.
Call your electricity company if you are unsure of any details, cannot find a utility bill, or suspect you’ve been slammed or crammed. Compare the information they provide with what you expected to pay. Overcharging can happen to anyone at any time. It can be a simple error, misunderstanding, slam, cram, or technical issue.
Can I Dispute My Energy Bill in Texas?
Yes, you can dispute energy bills in Texas, and there’s lots of help available. Many cases resolve quickly by contacting your electricity company.Yes, you can dispute energy bills in Texas, and there’s lots of help available. Many cases can be resolved quickly by contacting your electricity company.
The Public Utility Commission of Texas (PUC) regulates the electricity market, meaning companies must comply with PUC legislation to operate.
It’s important to remember that an electric company can refuse to supply power to your home if you fail to pay your bills, your home is not fit to receive electricity, you don’t pay the required deposits, or you have outstanding debts with other utilities.
Utilities cannot stop supplying power to your home for a previous tenant’s unpaid bills or not paying non-regulated services like Internet connections or home insurance.
An electric company must tell someone why they are refusing service. Failure to do so gives the customer the right to file a complaint with the PUC. Read the PUC’s “Know Your Rights” for full details before making contact.
How Do I Complain About My Energy Company?
Your first point of contact is your electricity company. Suppose you cannot resolve the dispute directly or have questions or concerns about the company. In that case, the next step is filing an informal complaint.
Contact your city authority first. If your city authority doesn’t act upon your complaint within 30 days, you can file an informal complaint with the PUC. If the PUC doesn’t receive a response from the city within 30 days, then you can turn your informal complaint with the PUC into a formal complaint.
Some cities don’t deal with informal complaints. In that scenario, contact the PUC. The PUC will assess your complaint and contact the electric company. An investigator will consider the case’s merits and send you and the company its decision.
If you are not happy with your energy bill and the PUC’s decision about your informal complaint, you can scale it up to a formal complaint. A formal complaint works similarly to a court trial, and you need to supply documentation and possibly hire legal representation. Learn how to file a formal complaint.
It’s important to remember that electric companies can also file formal complaints against customers.
What Is a Deadlock Letter?
A deadlock letter is something you ask from a business if you wish to make a complaint to a regulator or ombudsman. In Texas, your city authority or PUC may ask you to provide a deadlock letter from your electric company if you wish to make an informal or formal complaint. Deadlock letters can be sent via postal mail or email.
Can I Leave My Energy Provider?
Yes, customers can leave their energy providers. However, there are many reasons to take precautions when doing so.
Every electricity contract in Texas comes with an Electricity Facts Label (EFL) detailing the deal’s terms and conditions. EFLs include vital information like the price you pay for each kilowatt-hour (kWh) of electricity you use, contract type, length, and other fees.
Many deals have termination or exit fees if you leave the contract before its term finishes. This fee could be relatively low or may run into several hundred dollars. Consumers can leave their energy company but only if all contract terms and conditions are met.
Always contact your energy provider before changing — they may offer you a good deal to stay with them, too. Also, check your ZIP code via the PUC’s Powertochoose.org tool to look for new deals so you can compare.
How Do You Avoid Energy Exit Fees in Texas?
Some electricity deals have no cancellation fees, so people can easily change their electricity supplier, and can hunt around for lower prices. This information is detailed in the Electricity Facts Label (EFL).
Moving within the state of Texas? Many utility companies will allow you to shift your current deal to your new address without service or contract interruption. You must call your electric company in advance to check if this is possible. Your new home may not be in a deregulated area or your existing company may not operate in the area.
A typical time to avoid energy exit fees is when your current deal runs out. Care is needed at this time, and it’s essential you know when your contract ends.
Why is the final date of your contract so important?
Texas electricity companies will automatically switch you to a new month-to-month electricity price if your contract expires, ensuring you continue to receive a power supply. However, many switched tariffs are more expensive than the original deal, and energy bills can be higher than previously.
Your electricity company must send you a written notice 30 days or one billing cycle before your current deal expires. Some send them a lot earlier, and bills and dates look confusing.
The key figure to remember within Texas is 14 days. You can switch free of charge during a 14-day window before your contract ends. You are hit with exit fees if you change outside this timeframe. So, if you want to change your electricity provider, you need to do it during the 14-day window before your contract ends.
Can I Leave a Fixed-Term Electricity Contract Early?
You can leave any electricity contract early, but you may be hit with termination or early exit fees. Fixed-rate electricity deals tend to have relatively high termination fees. Energy companies want to reward loyalty over the contract length with a low and protected price.
How Many Days Before an Electricity Contract Ends Can You Switch?
You can switch electricity contracts free of charge in Texas during a 14-day window just before your contract ends. You may be hit with exit fees if you change electric companies outside this timeframe.
Remember: You must clear all monies owed to your old electric company before starting a contract with a new electric company. Utilities often make credit checks part of the contract’s acceptance and outstanding payment may make an applicant ineligible for the deal.
How Long Can Energy Companies Chase You for Debt?
Hopefully, being unhappy with your energy bill or having problems with a bill won’t get to the point where there is unpaid debt.
The statute of limitations in Texas gives a person or company up to four years to bring a lawsuit for an unpaid debt, such as a utility bill. No lawsuit can be filed after that time, making it time-barred. The monies are still owed, but a case cannot be filed.
Learn How to Save on an Electric Bill
We’ve looked at how to work out if you have been incorrectly charged for a utility bill, how to raise a complaint about bills, and ways to protect yourself from energy price rises with fixed-rate plans. We’ve also navigated the hidden financial penalties associated with switching electricity suppliers.
It may be that you cannot change your electricity supplier or contract just now. Fear not; there are other ways to save money on an electric bill, and one of those is to save energy. There is a myriad of energy-saving tips that will help reduce your electric bill and your carbon footprint.
How Do I Start Saving Money on Energy Bills?
At Amigo Energy, we’re proud of our energy deals and the helpful hints and tips we give our valued customers so they can save energy.
A professional home energy audit will reveal any number of energy-efficient measures. Inspectors look at everything from your hot water heater to your attic space to your lighting. Ask your energy utility, or browse the U.S. Department of Energy’s Home Energy Score program’s helpful map and assessor finder. Energy Star’s Home Performance page lists potential assessors, too.
There are lots of areas in your home that you can check without the need to hire a professional. The Energy Star guide can help as well as the U.S. Department of Energy’s guide to DIY home energy assessments.
Here are some actions to take if you’re unhappy with your energy bill:
- Turn off unused lights, and replace incandescent bulbs with more energy-efficient LED lights, LED bulbs, or compact fluorescent light bulbs (CFLs). Learn more with our guide to different types of light bulbs.
- Use power strips or smart power strips to make unplugging and turning off multiple devices simpler.
- Only run washing machines with full loads. Lower your washer’s temperature settings, too — some 90% of a wash’s electricity is for heating the water. Most detergents wash clothes well at lower temperatures, including cold water.
- Air dry clothes when possible, instead of using the dryer. If you do use a dryer, keep the lint catcher clean.
- HVAC systems, air conditioning, and water heating account for almost two-thirds of the average U.S. home energy use. Change HVAC air filters every three months.
- Ensure your home is well insulated — read our insulation guide for more. Caulk air leaks to reduce airflow and stop cold air seeping into your home in winter.
- Programmable thermostats with timers and smart thermostats give you more control over your home’s temperature.
- Use ceiling fans alongside or instead of air conditioning as a cheaper and energy-efficient way to stay cool in summer.
- Put weather-stripping on windows and doors to keep warm air in during the winter and cool air outside, lowering your heating bill. This cheap and easy insulation technique also helps air conditioning work more efficiently in the summer.
- Run appliances like dishwashers and washing machines on full loads. Keep fridges and freezers three-quarters full to improve their efficiency, with a temperature setting of 36-40 degrees Fahrenheit (2.2 to 4.4 Celsius) for fridges and 0 to -5 degrees Fahrenheit (-17.7 to -20 Celsius).
- Upgrade to Energy Star-approved appliances that are energy-efficient.
- Low-flow showerheads (2.5 gallons per minute) save water and up to $145 each year in electricity, according to Energy Star. Keep faucets off when not in use.
Turn the Energy Bill Blues Into a Smile Once More
If you’re unhappy with your energy bill, don’t worry — there’s a break in the clouds among the gloom of energy price rises. Utility bills may be on the increase, but there are many ways to budget, plan, and reduce the burden.
Know your rights, understand your current bill, contact your electricity company, and check to see if you live in one of Texas’ deregulated areas. Think about your energy usage and lifestyle, and look at the deals available.
Fixed-rate deals, including those with free nights of electricity, could be just the way to revolutionize your relationship with your electricity bill, bringing you good times during the hard times.
Brought to you by amigoenergy
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