Yes, Reliant Average Billing can be a valuable option if you prioritize stable monthly energy payments for easier budgeting, even though it doesn't reduce your total annual energy costs.
Understanding Reliant Average Billing
Reliant Average Billing (often referred to as Average Monthly Billing or "Budget Billing" by other providers) is a payment program designed to smooth out the fluctuations in your monthly energy bill. Instead of paying for your exact usage each month, which can vary significantly due to seasonal changes (like increased air conditioning use in summer or heating in winter), this program averages your past energy consumption and costs. This creates a more predictable and consistent bill amount each month.
The core benefit is that it allows your bill amounts to be more predictable, enabling more effective financial planning and budgeting throughout the year.
Key Benefits of Average Billing
The primary advantages of enrolling in Reliant's Average Billing program revolve around financial predictability and ease of management:
- Predictable Monthly Payments: Your energy bill will be relatively consistent month-to-month, avoiding the steep increases often seen during peak usage seasons. This eliminates the surprise of unexpectedly high bills.
- Enhanced Budgeting: With a stable monthly payment, it becomes significantly easier to budget for household expenses. You'll know what to expect from your energy bill, making financial planning simpler and reducing stress associated with variable utility costs.
- Reduced Seasonal Bill Shock: For many, the biggest benefit is avoiding the financial strain of high energy bills during extreme weather. Average Billing spreads those higher costs out over the entire year.
What Average Billing Does NOT Do
It's crucial to understand the limitations of Average Billing to determine if it truly "worth it" for your specific situation:
- No Reduction in Total Annual Costs: This is a critical point. Average Billing is a payment management tool, not a cost-saving program. It does not lower your overall annual usage charges or the per-unit price of your electricity. You will still pay for all the electricity you consume over the year; the cost is just distributed differently across your monthly bills.
- Not a Discount Program: It does not offer discounts on your energy usage or supply. Your rates remain the same as per your electricity plan.
- Deferred Balance Accumulation: In months where your actual usage is lower than your average bill amount, you might build up a "credit." Conversely, if your actual usage is higher, you'll accumulate a "deferred balance." This balance typically rolls over month-to-month and is reconciled periodically, or if you leave the program.
Who Should Consider Reliant Average Billing?
Average Billing is particularly beneficial for certain types of consumers:
- Individuals on a Fixed Income: Anyone with a consistent monthly budget will appreciate the predictability.
- Households Seeking Financial Stability: If managing fluctuating expenses is a challenge, average billing provides a valuable solution.
- Consumers Who Experience Significant Seasonal Usage Swings: If your electricity usage skyrockets during hot summers or cold winters, this program can prevent those periods from causing financial strain.
- Renters or Homeowners Who Prefer Consistent Expenses: For those who like all their monthly bills to be as stable as possible, this program aligns well with that preference.
Is It Right for You? A Quick Comparison
To help you decide, here's a comparison between standard billing and Reliant Average Billing:
| Feature | Standard Billing | Reliant Average Billing |
|---|---|---|
| Monthly Payment | Varies directly with actual usage | Consistent, based on rolling average |
| Total Annual Cost | Same as Average Billing | Same as Standard Billing |
| Budgeting | Potentially challenging due to variance | Easier and more predictable |
| Seasonal Spikes | Pronounced during peak usage months | Minimized, costs spread evenly |
| Bill Amount | Can be very high or very low | Generally stable and moderate |
Practical Insights
Reliant calculates your average bill based on your past usage, often using a rolling 12-month average to keep the amount accurate and responsive to changes in your consumption habits over time. While it aims for predictability, your average bill amount may still adjust slightly over time to reflect significant changes in your energy use or rates.
In conclusion, Reliant Average Billing is worth it if your primary goal is to achieve financial predictability and better manage your household budget by smoothing out your energy expenses throughout the year. It's a tool for managing cash flow, not for reducing your overall energy costs.
