Learn to Cut Costs with a "Usage-Based" Energy Scheme
Living expense essentials, like electricity and gas, are increasingly becoming costlier. The average monthly bill for electricity and gas is already hovering around the $200 mark, making it a cause for concern when bills surge unexpectedly. You might be wondering, "What can I do to manage my utility bills?" One option you might want to investigate is a Time of Use (TOU) plan.
What Exactly is a Time of Use Plan?
While your utility bill may present a flat rate for energy usage, energy demand fluctuates significantly based on the time of day. During peak hours (often 5 p.m. to 9 p.m.), when people arrive home from work and activate their appliances, demand is sky-high. Consequently, it's challenging for utility companies to provide adequate energy. This is where TOU plans come in. These plans encourage customers to use energy during off-peak hours, offering them a lower rate during those times. The idea is to make it financially beneficial for consumers to shift their energy use to off-peak hours, thus reducing demand during peak hours.
The Drawbacks and Savings
It's crucial to understand that most TOU plans will charge a higher rate during peak hours compared to the regular rate without a TOU plan. If you opt for a TOU plan and don't adjust your energy use accordingly, you could end up paying more instead of saving money. However, if your utility company offers a TOU plan and your usage allows for it, you could potentially save up to 40% off your energy bill. To achieve these savings, you'll need to commit to shifting a significant portion of your energy use to off-peak hours.
How to Save with a Time of Use Plan
To reap the benefits of a TOU plan, you'll need to adjust your daily routines. This may involve running appliances like dishwashers, washing machines, and vacuums late at night, or charging your electric vehicle after peak hours. Additionally, you'll need to adjust your thermostat settings so that your HVAC system doesn't run at full power during peak hours. While these adjustments can be challenging, they could result in substantial savings in the long run.
Finding a Time of Use Utility Plan
To determine if your utility company offers a TOU plan, you can visit their website or contact them directly. You can also check the U.S. Department of Energy's website for a listing of utilities that offer TOU plans on a state-by-state basis. However, just because a program is listed, it doesn't necessarily mean it's currently available. Be sure to contact the listed utility directly to discuss your options.
In conclusion, managing your utility bills during these increasing costs can be achieved by considering a Time of Use plan. However, it requires a commitment to adjust your energy use to off-peak hours to see any significant savings. By following the steps outlined above, you can explore the possibilities and determine if a TOU plan is right for you.
After noting the rising costs of essential utilities, you might consider switching to a Time of Use utility plan as a potential money-saving strategy. This plan operates on a basis of lower rates during off-peak hours and higher rates during peak usage times. If you're concerned about confusion when adjusting to this plan, understand that your utility company often provides clear guidelines on when these peak and off-peak periods occur.
Navigating the Time of Use plan might trigger a slight panic at first due to its complexity, but panic should not deter you from exploring this utility plan option. To reap its benefits, ensure you thoroughly understand the plan's structure and how it could potentially lower your average monthly utility bill.
Considering the financial advantages of such a plan, it's essential to carefully assess whether a Time of Use utility plan will save you money in the long term. While the initial adjustment might seem daunting, remember that you can shift energy use to off-peak hours for appliances like your dishwasher, washing machine, or electric vehicle charging. Adjusting your thermostat settings is another significant saving method.
