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All About Energy

Are you paying too much for your home electricity bill? (No, this isn't an ad)

Andrew Barth Jan 14, 2016 11:37:00 AM
Andrew Barth
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Electricity spend is one of the major living costs for families. The average electricity bill for a household was $1369.32 a year, according to the EIA's latest report. [1] The average residential electricity spend per person in 2012 was $750. [2] Since 2001, the energy prices have risen an average of 65% in the U.S. In Texas, prices increased by 49% and in Pennsylvania by 66%. [3]  

Average energy spend per person U.S.

Average Residential Retail Price of Electricity U.S.So how can a household try to lower their electricity bill? The answer is collective buying or programs like Bigger. Better. Together.

 

For years, businesses have aggregated their meters in order to secure wholesale pricing from suppliers. Whether you’re a business that has multiple locations, or if you decide to team up with other business owners, the potential to save money by aggregating your electricity consumption can be significant. Now you can do the same thing with your home electricity rate.

 

With "Bigger. Better. Together.", buyers group together to achieve a minimum purchase amount, and in doing so, they are able to secure a great, low rate for the product or service. To give you an idea of how this works, imagine this: if you needed to buy an appliance for your house and you went to a big box store to get it, you’re likely just paying the retail price.  But if you knew 100 people who needed to buy the same product, you could probably go directly to a manufacturer and negotiate a bulk buy, therefore, you get closer to the wholesale price of the product.   

 

With residential aggregation, individuals pool their usage to negotiate better contract terms and prices. In doing so, participants are able to choose an energy rate that is typically better than currently advertised prices.  So the bigger the group, the greater potential savings.  Thus, with the buying power of hundreds of households, you can unlock discounted energy rates to increase energy supplier competition for your home.

 


 

Sources:

[1] EIA.gov, 2014 Average Monthly Bill- Residential  

[2] Energy.gov, How much do you spend?

[3] EIA.gov, Electricity Data Browser

 


  

Lower Your Home Electricity Bill with Collective Buying

 


 

 

Topics: utility bill, Electricity Bills, home