PUCO: Is budget billing the right choice for you?

What is budget billing?

Fluctuating energy prices and weather conditions can have a dramatic influence on monthly energy bills. 

Budget billing is a program, offered by Ohio’s regulated electric and natural gas distribution companies, that spreads out the cost of energy used during high-demand times of the year. Instead of seeing an increase in winter heating bills or summer cooling bills, budget billing breaks down total yearly usage into manageable monthly bills.

How does budget billing work?

Your utility company will review your usage history. Based on that information and expected energy prices, the company will determine your budget amount. You will pay that amount throughout the budget billing period, which usually runs from August through July. Some companies offer different programs, such as quarterly budget billing.

At the end of the budget period, the company will review your actual usage. You will then receive a bill for an amount that may be higher or lower than your budget amount. This is called a “true-up” or settlement. The true-up makes sure that what you paid on the budget plan matches what you actually used during the budget period. You may either receive a credit if you paid too much during the budget period, or have to pay the difference if you did not pay enough during the budget period.

The company will then adjust your budget payment for the next period based on the previous period’s actual usage.

How do I sign up?

Contact your natural gas or electric utility company. They can provide you with specific information. Each utility company may have different budget periods and budget plans available. Be sure to ask when the budget period begins and when adjustments to your budget amount can be made.

Suppliers are not required to offer budget billing, however, some suppliers do. Contact your supplier to learn more. If you are considering enrolling with a competitive supplier, you might want to ask if they offer budget billing before doing so or review their terms on Energy Choice Ohio.

Learn more about budget billing specifics here. 

If you need assistance or have questions about budget billing, contact the PUCO Call Center online here or at (800) 686-7826.