Electric Bill Sticker Shock? Use This Exact Script To Ask for a Lower Rate
If you get a surprisingly high electricity bill, the first thing that may come to mind is calling your utility company. But if you plan to threaten to switch to a competitor unless the company drops your rate, you might want to rethink your approach.
Many electric utilities are regulated monopolies in their service areas, unlike cable providers or cell phone companies. So that usually means negotiating a special rate may not always be an option. But what you may be able to do is find a rate plan that better fits when and how you use electricity.
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“The right approach in this case is to perform a rate plan audit. Time-of-use plans, demand-based plans and off-peak benefits can reduce the bill drastically,” said Greg Field, owner of PGT Home Energy Solutions.
Here’s the phone script you can use and what to avoid on the call.
Request a Rate Structure Audit
Field recommended starting the call by asking the utility agent to run the numbers on your actual usage.
Say this: "Hi, my name is [Name] on account number [Number]. I am reviewing my expenses and need to make sure I am on the lowest possible rate structure for my usage pattern. Can you run a rate structure audit based on my last 12 months of hourly interval data? Which rate structure, based on my historical usage, would save me the most money?”
This question forces the agent to calculate how your household power consumption would do under every rate available. “Switching from a flat basic plan to a time-of-use rate plan reduces the summer costs by 15% to 20% instantly,” he said.
Ask About Peak Hours and Off-Peak Rates
Next, find out exactly when you're paying the most and whether there's a cheaper window you're missing.
Say this: “I would like to discuss your time of use and demand rate plans. Can you tell me the exact peak hours for my area and the current difference per kilowatt hour between peak and off-peak hours? Do you offer baseline credits, off-peak EV rates or load shifting opportunities that I am missing?”
“Utility companies charge a premium for using power during peak hours,” Field said. He recommended moving big loads like pool pumps, dishwashers and pre-cooling the AC to off-peak times to save money instantly without cutting overall energy use.
Check Your Bill for Programs and Credits You’re Missing
Finally, ask about three things most customers never think to check.
Say this: “Can we check three items on my account, please? First, are there any service charges and taxes that I can review? Do you have balanced budget billing so that I can avoid seasonal spikes? What home energy efficiency rebates or free smart thermostat programs are offered for my address?”
Field said balanced budget billing can help avoid huge summer electricity bills. “[Plus] utility companies offer rebate programs that allow getting free equipment or bill credits for participation in demand response management programs,” he said.
Get Any Rate-Plan Change in Writing
Once you’ve accepted an alternate plan, don’t end the call right away. Ask about when the change will occur and if there are any limits on switching back.
Field also suggested making sure “the plan change is documented in writing via email.”
That gives you something to refer back to when your next bill comes and helps you double-check that the new rate structure is actually saving you money.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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