Why Is My Electric Bill So High?

When you get a higher-than-expected bill from your power company, you’ll want to explore the potential reasons and take action to prevent another abnormally high electric bill. This guide will help you understand a high energy bill and offer tips to bring it down.

What Causes High Electric Bills?

Many factors can cause high electric bills. These include the type and size of your home, your climate, your habits, and the cost of power. The average cost of electricity in the U.S. for residential customers is now $.16 per kilowatt hour, up from $.14 per kilowatt hour in 2022. Here are several factors behind higher electric bills and what you can do to lower yours.

1. Change in Seasons and Weather

Your air conditioner works harder on hot days and your heater must step up in the winter. You’ll consume more electricity if it powers both heating and air conditioning. Otherwise, you might be asking: Why is my natural gas bill high? If you are wondering “why my electric bill tripled in one month,” don’t simply compare it with last month. Compare it with your bill from the same time a year ago. You might see you don’t have an abnormally high electric bill after all. It could be a seasonal trend.

2. Changes in the Cost of Fuel Used for Power Generation

Despite rapid de-carbonization of the power grid, a large portion of power generation still uses fuel from gas, coal and oil. When it is extremely cold, you need more heat. And so does everyone else. When demand is pushed higher, fuel prices go up and thus so do electricity costs.

3. Current Events Impacting Costs

World events, such as the pandemic, war in Ukraine, activities by OPEC and natural disasters like storms and forest fires affect demand, availability, and price. Changes in regulations and laws on drilling and pipelines also affect fuel prices and the cost of electricity. You can explore how electricity pricing works to learn more about drivers of electricity costs.

4. Inadequate Insulation or Air Leaks

You may not notice that your home’s insulation is insufficient when temperatures are mild. In extreme cold, you may feel air leaks from windows and doors. When it is extremely hot, bad insulation makes it harder to keep cool. A home energy audit may answer your question about why your electric bill is so high.

Indeed, poor insulation is a common factor in what causes high electric bills. An audit can help you when it comes to finding air leaks in your home. You could put an end to energy waste and potentially cut your bill by beefing up your insulation. A simple thing, like how to weatherstrip a door, can make a big difference.

5. Overdue HVAC Maintenance

What can you do when your electricity bill is too high? One way to help reduce energy costs is by performing HVAC maintenance.

Even if they’re not the newest models, your air conditioner and heater will be more efficient with clean filters and motors that are running smoothly. If you have a clogged filter or worn parts, your system will have to work harder to achieve the same level of heat or cooling, consuming more electricity, leading to an abnormally high electric bill. Following HVAC lifespan tips also keep your systems running longer.

6. Using Energy During Peak Times

Seasonal demand changes are only part of the story. Demand can change throughout a day. At night, when most businesses are closed and people are asleep, demand may be lower. During the hottest summer days, demand in the late afternoon could be exceedingly high.

You may have access to plans that encourage you to run large appliances, like dishwashers, washers and dryers, ovens, AC units, and vacuums during evening off-peak times. You may be able to save money with plans that reward you for using such appliances when electricity rates are lowest.

7. Leaving Fans and Lights On

Leaving lights, fans, and appliances on when not in use can cause high bills.  Leaving a light on is bad enough, it is worse with energy-wasting incandescent bulbs. Swap out bulbs for efficient LED lights. Turn off appliances like televisions, computers, game consoles and others when not in use. Properly placed fans may be worth leaving on if they circulate air and reduce how hard your HVAC must work.

8. Greater Use of Home & Devices

Working from home increases energy usage. You may run your air conditioner more or keep your heat higher to be comfortable. Your computer, printer and other electronics will draw energy all day. You may need brighter lighting, too.

You can reduce the impact by using efficient lighting and devices. Unplug and turn off devices when left idle. Plugging devices into smart plugs that automate turning them on and off can help. You won’t have to put effort into remembering to turn them off.

How to Possibly Save Money on Your Electricity Bill

The price of electricity is driven by complex factors. Rising prices are beyond your control. Changing a few habits, taking advantage of energy-saving tips and a few DIY upgrades gives you more control of your bill.

Shop for a different energy supplier

If you live in an energy choice state, you can choose your supplier and shop for plans that work with your lifestyle to help save you money.

Switch from variable to fixed supply energy rates

You can help protect yourself from high fuel costs and an abnormally high electric bill by changing your power contract terms to lock in an electricity rate for an entire year. It is tough budgeting with unpredictable variable rates. Fixed supply rates give you the ability to plan and could possibly save you money in the long run.

Upgrade home insulation and seal drafts

Adding and upgrading home insulation and taking the time to seal drafts are efforts that could pay off in terms of comfort and energy savings.

Install a smart thermostat

Swap from a traditional thermostat to a smart model. They will maintain the best thermostat settings and optimize how your HVAC systems run as conditions change throughout the day, which could greatly improve energy efficiency and costs.

Adjust habits at home

Making small adjustments in home habits, like turning off lights, lowering the thermostat, making sure your dishwasher is full before running it, and using drapes and fans to manage sunlight can all help when you are faced with figuring out why your electric bill is so high.

Compare electricity prices for your home with Constellation

Eliminating waste and changing habits could go a long way to making sure you minimize high electric bills. If you live in a state with energy choice, it is worth exploring options with Constellation that may give you greater control over what you pay.