Is Reliant Average Billing Worth It?

Reliant Energy’s Average Billing program offers a way for customers to manage their electricity expenses throughout the year. This program aims to provide more consistent monthly payments, helping individuals and households budget more effectively for their energy costs. Understanding how this billing method functions and its implications is important for determining if it aligns with your financial planning and energy consumption patterns.

Understanding Reliant Average Billing

Reliant Average Billing is a budgeting tool designed to stabilize monthly electricity payments. It works by averaging your past electricity usage over a specific period, typically the last 12 months. This calculation helps to smooth out typical fluctuations in energy bills that occur due to seasonal changes in electricity consumption. The program aims to offer a more predictable payment amount each month, making it easier to anticipate and plan for energy expenditures. If a customer does not have 12 months of usage history at a service address, Reliant will use the historical usage data for that address to calculate the initial average billing amount.

How Average Billing Affects Your Monthly Payments

The average billing amount you pay each month is not static; it is recalculated periodically, typically monthly, to incorporate your most recent energy usage. This recalculation considers your total usage charges from the past 12 months, divides that sum by 12, and then adjusts the amount by adding or subtracting one-twelfth of your “deferred balance.” This creates a rolling average that adapts over time to your actual consumption patterns. Your average monthly bill can still fluctuate slightly, increasing or decreasing based on your electricity usage.

A significant aspect of this program is the “deferred balance,” which represents the cumulative difference between the average amount you have paid and the actual cost of the electricity you have consumed. If your actual usage costs more than your average payment, the difference is added to this deferred balance as a debit. Conversely, if your actual usage costs less, the difference creates a credit to your deferred balance. This balance is continuously tracked and can be viewed on your monthly bill.

When Average Billing May Align with Your Needs

Reliant Average Billing can be particularly beneficial for households seeking greater predictability in their monthly expenses. By leveling out the seasonal highs and lows of electricity bills, the program supports more consistent budgeting, which is helpful for those with stable incomes. This approach can prevent the financial strain caused by unexpectedly high bills during peak usage periods.

For homes experiencing significant seasonal variations in energy consumption, average billing can alleviate the burden of large, fluctuating payments. It allows customers to spread the cost of higher-usage months over an entire year, making energy costs more manageable. This can contribute to more stable financial planning by providing a clearer picture of your anticipated monthly energy commitment.

Key Considerations Before Committing to Average Billing

Before opting for average billing, it is important to understand certain implications. The program does not reduce your total annual electricity cost; it merely redistributes when and how you pay that cost throughout the year. Your overall energy expenditure remains the same as if you were on a standard billing plan. The primary purpose is budget management, not cost savings.

A critical component of average billing is the “annual true-up” or settlement. If you cancel the average billing program or terminate your electricity service, any outstanding deferred balance becomes immediately due. This means if you have consistently paid less than your actual usage, you could face a substantial lump-sum payment. Significant changes in your energy consumption, such as acquiring new appliances or changes in household size, can cause your average bill to become misaligned with your actual usage, potentially leading to a larger deferred balance.

Steps to Enroll in Average Billing

Enrolling in Reliant Average Billing is a straightforward process for eligible customers. You can typically sign up for the program through Reliant Energy’s online account portal, which provides a convenient way to manage your services. Alternatively, customers can contact Reliant’s customer service by phone to enroll. Some mobile applications also offer an enrollment option.

To enroll, you will likely need your account number and may need to meet certain eligibility requirements, such as having a good payment history or being a customer for a specific duration. Once enrolled, the program works best when maintained for a full 12-month cycle to fully realize the benefits of smoothed payments. If you decide to discontinue the program, you will need to contact Reliant to cancel it.