New Electricity Plan, New Bill Shock? Here's Why

Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

New Electricity Plan, High Bill? Don’t Panic, Here’s Why

Don’t freak out if you recently switched to a new electricity plan and are now facing a higher-than-expected first bill.

We get it; it’s frustrating and confusing, especially when you were hoping to save money. But here’s the thing: there are several usual reasons why your initial bill might seem a bit off.

Let’s dive in and figure this out together, shall we?

Prorated Billing: It’s Not as Scary as It Sounds

Prorated billing is among the most common culprits behind a higher first bill. Here’s the scoop.

Billing Period Alignment

Unless you have magical powers that allow you to switch plans at the start of your billing cycle, your first bill will likely be prorated.

In plain English, you’ll only be charged for the days you were on the new plan, not the whole month.

So, if you switched halfway through a 30-day month, your first bill would only cover those last 15 days.

Bill Credit Plans and Prorating

If your shiny new plan comes with a bill credit for using a certain amount of electricity, prorating can make it trickier to hit that target in the first billing period.

Let’s say your plan gives you a $50 credit for using 1,000 kWh in a month, but your first bill only covers 20 days.

You might miss out on that credit this time, but don’t worry – you’ll have an entire month to aim for it next time.

Partial Month Charges

Some plans have fixed monthly fees, like a base charge or a minimum usage fee.

When your bill is prorated, these charges might be adjusted to match the shorter billing period.

To get the complete picture, look at your plan’s Electricity Facts Label (EFL), which will explain how these fees are calculated and prorated.

The key takeaway here? Switching to a new plan is all about long-term savings.

Don’t let a funky first bill make you second-guess your decision.

Comparing to Your Old Plan? It’s Not Apples-to-Apples

We know it’s tempting to look at your new bill and your old ones side-by-side but trust us, it’s not always a fair comparison. Here’s why:

Seasonal Changes: If you switched plans during a significant weather shift (think a scorching summer or a frigid winter), your electricity usage will probably be different than it was the month before, no matter your plan.

Fees Can Vary: Your old and new plans might have different fee structures. Maybe your old plan had lower base rates but higher fees, or vice versa. The total bill amount doesn’t tell you the whole story.

Still Scratching Your Head? Let’s Investigate Further

Okay, we’ve talked about prorating and fees, but what if your bill still seems way off?

It’s time to put on our detective hats and do some digging:

Rate Check: Double-check that the rate you’re being charged matches the one you signed up for. Mistakes can happen, even to the best of us.

Usage Review: Has something changed in your household that is causing you to use more electricity? Did you buy a new appliance or have guests staying over?

Meter Reading: Make sure the meter reading on your bill is accurate. If something looks fishy, call your electricity provider to investigate.

Customer Service Chat: If you’re still scratching your head, don’t hesitate to contact your new electricity company. They’re there to help; sometimes, a quick explanation is needed.

Keep Your Eye on the Prize: Long-Term Savings

We know a higher-than-expected first bill can be stressful, but remember: switching electricity plans is about saving money in the long run.

Here’s what you should focus on:

The Next Bill: Give your plan at least one full billing cycle to see how it performs under normal circumstances.

The Big Picture: Monitor your bills over the next few months. Are they generally lower than what you were paying this time last year with your old plan? If so, you’re on the right track.

Let ComparePower Help: We can analyze your usage and predict which plans will save you the most money, so you don’t have to play guessing games.

Stay on Top of It: Don’t just set it and forget it. Make a habit of regularly reviewing your plan and comparing it to other options. That way, you’ll always know you’re getting the best deal.

Bonus Tips: Small Changes, Big Impact

Adopting some energy-saving habits can help lower your bills, no matter your electricity plan.

Here are a few easy ones to try:

1. Tinker with your thermostat: Increase it a few degrees in summer and decrease it in winter to save on heating and cooling costs.
2. Opt for energy-efficient appliances: When replacing an old appliance, look for the ENERGY STAR label.
3. Flip the switch: Turn off lights and electronics when you’re not using them. It might seem small, but it adds up!
4. Embrace natural light: Open your curtains and blinds during the day to reduce your need for artificial lighting.

Don’t Let a Bump in the Road Derail Your Savings

Changing electricity plans is a smart move for many Texans.

Don’t get discouraged by a slightly confusing first bill. Understanding the reasons behind it and focusing on the big picture will put you firmly on the path to lower energy costs.

By staying informed, proactive, and open to making adjustments as needed, you can confidently navigate the world of electricity plans and find the one that best fits your needs and budget.

You’ve Got This

We know that switching electricity plans and then seeing a higher first bill can feel like a real kick in the pants.

But don’t let it get you down. You’ll be back on track by understanding its reasons (like prorating and fees) and focusing on your long-term savings goals.

The bottom line? Stay informed, stay proactive, and don’t be afraid to make adjustments as you go.

You’ve got the power to take control of your electricity costs.