Budget billing

Budget billing is a payment method offered by utility companies that helps customers manage their energy costs by setting a fixed monthly payment amount. This amount is calculated by averaging the customer's energy usage over the past year. Consequently, customers pay the same amount each month, regardless of fluctuations in actual energy use. This method provides predictability and ease in budgeting, making it particularly beneficial for people who have variable energy costs throughout the year due to seasonal changes.

Jonathan Mendosa from the ChooseFI explains that budget billing has helped him by averaging high and low season costs into a predictable monthly payment. At the end of the year, the utility company reviews actual usage to adjust the billing if you've paid too much or too little 1.