ok i have just got my first home and need ways to save money is electricity cheaper to be on a meter (pay as yo go) or to pay monthly
You will always be on a meter and (probably) pay monthly.
Your choices are,
1. Pay as you go.
Each month, you pay for the electricity you have used, plus their fixed fees.
2. Budget
You let the electric company estimate your usage and pay the same amount each month, plus their fixed fees. Once (or maybe twice) a year you settle.
In the end, both plans are the same price.
Lets suppose you’re paying 11 cents per kilowatt hour and fixed fees are $7 per month. Your average usage for one year is (or estimated will be) 450 kwh per month.
In March, you use 300 kwh
In July (running that air conditioner) you use 950 kwh
Under the pay as you go plan, you would owe $40 for March but in Aug your bill is $111.50
Under their budget plan, each bill is $56.50 (for your average 450 kwh.)
Once each year you have a settlement month. If you owe them, the difference will appear on your bill. If they owe you, the amount is subtracted from your amount due for that month. They will also calculate and forecast your future use, and adjust your budget amount.
Many on a tight budget may prefer the budget plan so they won’t have problems paying that July bill.
Others might prefer the pay as you go so they never pay for more than they used for that month and/or never have a credit built up that the electric company owes them.
You can save a lot from electricity if you do this, turn off all the unnecessary lights or unplug the unnecessary devices in your home when not in use.
References :
You will always be on a meter and (probably) pay monthly.
Your choices are,
1. Pay as you go.
Each month, you pay for the electricity you have used, plus their fixed fees.
2. Budget
You let the electric company estimate your usage and pay the same amount each month, plus their fixed fees. Once (or maybe twice) a year you settle.
In the end, both plans are the same price.
Lets suppose you’re paying 11 cents per kilowatt hour and fixed fees are $7 per month. Your average usage for one year is (or estimated will be) 450 kwh per month.
In March, you use 300 kwh
In July (running that air conditioner) you use 950 kwh
Under the pay as you go plan, you would owe $40 for March but in Aug your bill is $111.50
Under their budget plan, each bill is $56.50 (for your average 450 kwh.)
Once each year you have a settlement month. If you owe them, the difference will appear on your bill. If they owe you, the amount is subtracted from your amount due for that month. They will also calculate and forecast your future use, and adjust your budget amount.
Many on a tight budget may prefer the budget plan so they won’t have problems paying that July bill.
Others might prefer the pay as you go so they never pay for more than they used for that month and/or never have a credit built up that the electric company owes them.
References :
The per unit cost of electricity is lower on a monthly plan, but you have to pay service and delivery charges on top of your usage, and keep it paid, but over all might be cheaper.
For pay as you go, you can pay less each time as you go and can afford, but in the long run will likely pay more for your electricity, at least for typical use. If you cut your electricity usage to the bone, you likely can save money that way.
References :