How to Lower Your Utility Bills, and Where to Get Help

Utility bills are the bills that change with the seasons, which makes them hard to budget for and easy to underestimate. The good news is that there are three levers: understanding your pattern, using the options your utility already offers, and cutting usage where it’s easy. And if bills are already hard to pay, federal help exists.

Step 1: Find your pattern

Pull up your last 12 months of electric, gas and water bills, from your paper bills or your utility’s online account. Write down the amount for each month.

You’ll usually see one or two peaks: winter if you heat with gas or electric, summer if you run air conditioning. Knowing your highest month tells you how much to plan for, and the yearly total tells you what you really pay.

Divide the yearly total by 12. That’s your true monthly utility cost, and it’s the number to use in your budget, even in cheap months.

Step 2: Ask your utility what it offers

A phone call or a look at your utility’s website can uncover options you’re not using. Ask about:

• Budget billing or levelized billing, a plan some utilities offer that spreads your yearly cost into equal monthly payments
• Payment plans if you’ve fallen behind
• Assistance programs for households with lower incomes, seniors or people with medical needs
• Due date changes, so the bill lands after payday
• Energy audits or efficiency programs

Each utility has its own programs, so ask about each one directly.

Step 3: Cut usage where it’s easy

You don’t need to renovate to save. Start with the changes that cost nothing:

• Thermostat. Set it lower in winter and higher in summer, especially while you’re asleep or away. A programmable or smart thermostat does it automatically.
• Water heating. Shorter showers and full loads in the dishwasher and washing machine use less hot water.
• Devices. Unplug or switch off chargers and electronics you’re not using.
• Leaks. Fix dripping faucets and running toilets, which add to your water bill.
• Lighting. Switch to LED bulbs as old ones burn out.

The CFPB’s Your Money, Your Goals toolkit includes a cutting-expenses tool that helps you list and track changes like these.

If you’re struggling: LIHEAP

The Low Income Home Energy Assistance Program, run by the federal Administration for Children and Families, “provides federally funded assistance to reduce the costs associated with home energy bills, energy crises, weatherization, and minor energy-related home repairs,” according to the ACF.

For heating, the ACF says LIHEAP funds can help households by providing assistance with home heating bills, preventing energy shutoffs, reconnecting services, making homes more energy efficient, and repairing or replacing heating equipment.

How to apply: the ACF points people to Energyhelp.us for information on how to apply for energy assistance.

Watch for scams: the ACF says LIHEAP does not provide direct grants to individuals and does not charge a fee for receiving a benefit. A message offering you a LIHEAP grant, or asking for a fee, is not genuine.

If you’re already behind

Call your utility before a shutoff notice, not after. Ask about a payment plan, and tell them about any medical needs in your home. Utilities keep your home running, so it pays to contact them early. Our guide to what to pay first when you’re behind explains how to prioritize, and the CFPB’s toolkit includes a prioritizing-bills tool.

Watch autopay with variable bills

Autopay is convenient for utilities, but the amount changes. The CFPB warns that if your balance is too low when an automatic payment is due, both the bank and the company might charge you a fee. Check the amount each month before it comes out, or keep a buffer in your bills account.

Keep seasonal bills in view

A utility bill that doubles in January shouldn’t be a surprise. A bill tracker like Billo lists every bill with its due date and reminds you 3 days before each one, so you can check the amount and move money before it comes out.

Summary

• Read 12 months of bills and budget the monthly average.
• Ask your utility about budget billing, payment plans and assistance.
• Cut usage with free changes first.
• LIHEAP helps eligible households; apply via Energyhelp.us and never pay a fee.