Why Is My Electric Bill So High?

TL;DR: Discover why your electricity bill might be unexpectedly high and how to address it. Key contributors include appliance usage, seasonal lifestyle changes, and energy rates. Learn tips to lower costs without sacrificing comfort.

• Appliance Usage: High-wattage devices, phantom loads, and outdated appliances increase electricity use.
• Seasonal Changes: Cold or hot weather and increased home activity raise heating, cooling, and appliance costs.
• Energy Rates: Fluctuations in supply, demand, and deregulated markets impact electricity prices.
• Solutions: Use energy-efficient appliances, address home insulation issues, and switch to lower rates in deregulated states.

Every month, you dutifully pay your electric bill. By now, you think you know precisely how much to budget for energy. However, this month, there has been a spike in your electricity use.

What could be drawing so much power? You’re sure it’s a mistake. You decide to call your provider and ask, “Why is my electric bill so high?”

You might not like what they have to say.

Appliance usage, energy rates, and seasonal variations all play a role in boosting your monthly bill. More often than not, those costs are justified, and you’ll be on the hook for your higher-than-average balance. However, there are several mindful ways to reduce that number without impacting your overall quality of life.

Keep reading to learn the common reasons why your electricity bill is so high. We’ll share ways you can avoid them to stay within your budget.

From a new high-powered appliance to cold winters, many factors play a role in how much electricity you use each month. Below are the top three reasons why homeowners find surprises on their electricity bill—and what to do about each one.

Not all appliances are created equal. Some are notoriously power-hungry, such as air conditioners, clothing dryers, and electric ovens.

The more an appliance is used, the more electricity it draws. Consider whether you’ve recently purchased a new appliance or changed your routine. Are you working from home and using the air conditioner more during the day? Have you welcomed a new baby, and found yourself doing twice the laundry?

Even home appliances with a high Energy Star rating will draw a lot of electricity if used frequently.

Here’s what to look for when determining if an appliance is the culprit:

• Wattage: Wattage is a measure of how much electricity an appliance uses in one hour. A higher-wattage device uses more electricity and, thus, costs you more money while in use.
• Efficiency: Older appliances tend to be less energy efficient than newer ones. That’s due to updates to technology and manufacturing practices. Likewise, appliances can become less energy efficient over time.
• Phantom Load: Did you know that many appliances use electricity even when you aren’t using them? If you leave a less efficient appliance plugged in, it will draw power constantly. Though it may only draw a few watts, they can add up if you’re counting pennies.

Consider using a tool such as a smart meter to monitor your electricity usage. It can help you determine what’s pulling the most power. Likewise, consider unplugging appliances when you aren’t using them. You can even adjust settings on some modern appliances to make them more efficient.

One of the top questions we get is, “Why is my electricity bill so high in the winter?” In some regions of the country, the answer is simple: it’s cold outside!

That impacts electricity usage in two major ways:

1. You’re more likely to use high-wattage heating devices in the winter. For example, space heaters, electric blankets, and hot water heaters.
2. You’re more likely to stay home in cold weather, using more heat, plus more appliances like televisions and ovens.

We’re not suggesting that the answer is to freeze! Instead, consider choosing more energy efficient appliances and heating methods. Look for high Energy Star ratings, and consider using power-saving tools, such as programmable thermostats.

Also, if your house is so cold that you need to run the heater 24/7, it may be worthwhile to replace your insulation. Professionals recommend doing so every 15-20 years. If you’re in an older home, it may be time to replace it.

Alternately, there may be leaks around your doors or windows that are letting cold air into your home. The solution may be as simple as installing a door sweep or replacing your weatherstripping.

Electricity rates can fluctuate based on supply and demand. When energy is in demand, your utility company or electric supplier may increase their rates. As a result, you’ll find yourself paying more per kWH. That’s another reason why you may see seasonal variations in energy prices.

Likewise, electricity rates tend to vary more in deregulated energy markets. In certain states, consumers have the power to choose their electric provider. As a result, competition between competitors can sometimes impact pricing.

The good news is that, in deregulated markets, you can switch your energy provider if you find a lower rate. Use a vetted online energy marketplace such as EnergyPricing.com. It takes about two minutes to compare and switch your energy supplier.

In fact, even if your current rate is reasonable, lower rates may be available. We always recommend taking a look to ensure you’re getting the best deal on the electricity that keeps your home running.

North Carolina is a regulated energy state. That means that consumers do not get to choose who supplies their electricity. As a result, energy prices shift based on market demand. If your electricity bill is high, it may be due to seasonal or market fluctuations.

Texas is a deregulated energy state. In fact, it was the first state to deregulate its energy. If your electricity bill is high, we recommend browsing the energy marketplace and shopping for a lower rate.

Ohio is also a deregulated energy state. If your rate is high, you have the power to choose a more affordable electricity supplier. Browse the energy marketplace, find a supplier with a lower rate, and switch in minutes.

If you live in a deregulated energy state, stop paying a premium for your electricity. First, ensure your appliances and energy use is reasonable following the tips above. Then, visit the energy marketplace at EnergyPricing.com to find and switch to a more reasonable rate. All you have to do is enter your zip code to get started.