The Cold Winter Reality

This winter has been cold. Not “wear an extra sweater” cold. More like “the furnace has been auditioning for Employee of the Month” cold.

When winters are colder than average, usage goes up. If your equal billing amount was calculated based on milder usage, you may be accumulating a balance that will be reconciled at the annual true-up.

That true up usually lands in the summer.

Nobody wants a July bill that feels like a financial jump scare.

The Gentle Nudge

Here is the hard and honest part.

If you check your Budget Billing summary and see that you are significantly behind, it may be worth considering a small voluntary increase now.

Not because anyone loves paying more today.
Not because utilities are trying to be difficult.
But because spreading the adjustment over several months is often less painful than absorbing it all at once at reconciliation.

We are living this ourselves.

Enbridge recently increased United Way’s equal billing by $30 per month. It was not thrilling. It did not inspire applause in the office. But it will prevent a much larger catch up later, and it reminded us to remind YOU all, to also look at your bills.

Think of it as adjusting your course mid journey rather than discovering you drifted far off track when you reach the harbour.

What We Are Encouraging

1. Check page two of your bill. Hydro One Enbridge
2. Look at your Budget Billing balance.
3. If you are significantly in the negative, consider calling your provider to review your amount.
4. If you are unsure or feeling anxious about what you’re seeing, reach out early.

This is not about mismanagement. It is about avoiding financial whiplash.

It’s also important on natural gas bills, to see if there are too many “estimated” billing cycles. Read this blog post from January 2024 to learn more about estimated billing cycles. It’s more of a natural gas problem than an electricity problem.

Budget Billing works beautifully when it is monitored. When ignored during an unusually cold winter, it can quietly build up a surprise.

Financial Friday takeaway: Equal billing is a smoothing tool, not a savings plan. The smoother you keep it during the year, the gentler the landing at reconciliation.

And if you are worried about an upcoming bill and not sure what your options are, please remember that reaching out early is always stronger than waiting until the notice feels overwhelming. Calling 211 to find out about all the support programs and knowing what you need to do NOW can help.

Sometimes the bravest financial move is simply flipping to page two.

Let’s start with the nuts and bolts.

How Equal (Budget) Billing Actually Works

Budget Billing spreads your annual electricity or natural gas cost evenly across the year based on your established consumption history.

Once a year, your account is reconciled. That means your actual usage is compared to what you’ve paid. If you used more than you paid for, there will be a charge. If you used less, there will be a credit applied to your reconciliation bill.

A simple example:

If you paid $1,200 over the previous 12 months, the total is divided by twelve. Your Budget Billing amount would be $100 per month.

It is designed to help with budgeting. It smooths out seasonal spikes. It does not reduce your total cost. It simply spreads it out.

I know I pay $10 to $20 over my equal billing amount to build up extra credit. Over the years, that’s helped me with super cold winters as I don’t have the dreaded summer “catch-up bill” and on milder winters, I get to take an extra month or two off for paying in the summer.

Monthly Monitoring Matters

There are automatic reviews in the 6th and 9th month of enrolment to ensure your Budget Billing amount aligns with your usage.

If an adjustment is needed, whether up or down, it will be noted on your bill and take effect the following month.

On your bill you will see:

• Your monthly Budget Billing Plan amount
• A Budget Billing Plan summary on page two, showing the balance in your plan

That summary page is quietly important. It tells you whether you’re running ahead or falling behind.

The final thought

If you are struggling this winter, reach out to 211 and get connected to the various utility assistance programs that could assist with an increase in costs.