The Average Electricity Bill as an Important Benchmark

Your average electricity bill speaks volumes about your energy use. Some may argue that the monthly bill provides better input in your current situation, but the average bill is highly important as a benchmark for comparison. Calculating your average bill and using it to assess your current electricity supplier is one of the easiest methods to check whether you are overpaying for the service.

Understanding How "Average" Works

One of the first things that need to be addressed is the base you are using to calculate an average bill. To create an accurate average bill, you need a large base of your previous bills.This is why, you should always distinguish between quarterly and annually average bills.

The Average Electricity Bill as an Important Benchmark

Quarterly Average

A quarterly average bill is calculated using three previous bills.Three bills is a small base, but it can still provide helpful insight into your electricity spending. You can get two quarterly average bills from same periods during different years to check if there are any drastic changes in your energy consumption. To compare the consumption, draw an average kilowatt usage for the months in question and then check the numbers against the average bill from the year before.

Annually Average

The annual average bill requires twelve consecutive monthly bills to calculate. Its larger base makes it very good at determining whether you are currently getting a good deal from your electricity supplier. Twelve months cover all seasons and yearly events such as holidays, so it is a perfect base to show how much you are saving or wasting throughout the year on your electricity bill.

Consumption also has to be taken into consideration, as the average kilowatts spent varies from one state to another. The U.S.Energy Information Administration publishes yearly reports with average consumption and price data for all states.

How Average is Your Average Bill?

What you pay for electricity can be compared to average households to some extent. We say "to some extent" as these are calculations where the numbers have been adjusted twice. The first time is when each individual household creates an average bill and the second one is when that average bill of all households is calculated to create an average bill for an average household.

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Expected Differences in an Average Electricity Bill

An average household electricity bill relies mainly on average consumption. The number of members in your household and whether or not you use electricity for heating influences consumption a lot. If your household is bigger than average, then a bigger bill is to be expected.

What Does it Mean?

Comparing only with your own billing history, if you notice a drastic increase during same periods in different years, then you may have a problem with your contract.

Expired Contracts

An expired contract is the usual suspect when it comes to issues of this type. It is common practice for suppliers to shift you to their default tariff option once your contract has expired. This tariff usually is not in your best interest and you are practically losing money with each day that passes without drawing a new contract. Check the date of the contract and make appropriate actions.

End of Discounts

An increase may also mean that your contract discounts have ended. Some contracts offer discounts for a short period after signing, so the bill increase may simply be due to their absence.

Hire Help to Stay on Top of All Issues

Our Luminext experts can do a fair assessment of your average electricity bill. We can provide advice on how to reduce your average bill and we can help you broker a better deal with the supply companies. Contact us today and watch your average bill drop in the near future.

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