(NEXSTAR) – Every year, people brace for their credit card statements after holiday shopping, but there’s another hefty cost that creeps up on us during the colder months – the utility bill.
“I think what people often don’t realize is that even if they keep their thermostat at the same level, when the weather gets colder, the house is just going to use more energy, and that means bigger bills,” said David Conn, vice president of business development and policy at Exceleron, a technology company that provides utility prepay services.
“At Baltimore Gas and Electric, where I used to work, we would get calls all the time from people saying, ‘But I haven’t touched my thermostat … why is my bill so much higher?'” Conn recalled.
Conn said the biggest energy drain in most houses during winter is the heating system, typically followed by refrigerators and freezers, which have to run constantly. Hot water heaters can be major gas and electric hogs for the same reason.
While simply unplugging the refrigerator or turning off the heat entirely isn’t an option, lowering the thermostat, running other appliances during off-peak hours and turning down the hot water heater a couple degrees can save money. Your utility provider may also offer a payment plan, like Exceleron’s pay-as-you-go service, which can save customers money by allowing them to quickly recognize how their behaviors affect their bill, and change habits as they go, Conn told Nexstar.
Conn added that Exceleron only participates in more stable regulated energy markets, so that prepay doesn’t cost customers any more in the short or long term.
However, residents living in deregulated markets – where customers have multiple energy suppliers to chose from, but are also subject to potentially-volatile rate changes from individual providers – may not benefit in the same way.
The downside of prepayment options in those markets, according to CNET managing editor Katie Collins, who specializes in deregulated energy and personal finance, is that cheaper up-front costs – there are some plans that allow customers to skip the initial deposit, for example – may ultimately cost more.
“Usually, the rates are higher compared to a traditional electric plan. In the long run, you pay more for your electricity,” said Collins.
So what are some other strategies for saving money during the dark, cold months of December, January and February?
It’s time for an audit
Whether it’s a utility or a third-party company, the U.S. Department of Energy recommends having a home energy audit done to determine where a homeowner might be able to save the most.
During the audit, the person performing the assessment will go room by room to see how much electricity is being used and where inefficiencies – such as air leaks from door frame gaps, older windows or a lack of insulation – might be costing the homeowner.
Local utility providers may offer subsidies for upgrading the home with new, more energy-efficient systems.
Don’t want to pay for a home energy audit? The Energy Department offers these do-it-yourself tips.
Energy ‘vampire devices’
Save on your electric bill by identifying and unplugging the devices that suck up energy – and money – while not being used.
One study from the Natural Resources Defense Council (NRDC) found that nearly one-quarter of home energy goes to the so-called “vampires.”
Common household Draculas include phone chargers, laptop chargers, coffee machines, hairdryers, hair straighteners and video game consoles.
The NRDC recommends buying products with the Energy Star label, as well as devices that have an on-off switch – unless you are comfortable plugging it into the wall only during use. Another strategy is to plug your devices into a power strip, which can easily shut off power to multiple devices. Using timers can also help defeat device vampirism, the group says.
Finally, the NRDC recommends buying a power meter or asking one’s local utility to install a smart meter.
“These cheap and simple gadgets can tell you how much energy a device is using when sitting idle, which gives you the option of changing your behavior,” NRDC’s Brian Palmer writes. “Alternatively, smart meters measure electricity consumption in small intervals and can tell you how much energy you’re using when everything appears to be turned off.”
What other tips are there?
While waiting for that home energy audit, the Department of Energy suggests the following, after you’ve dealt with any vampire devices:
- Open south-facing window curtains during the day to take advantage of the sun’s rays before closing them at night to help insulate the window panes
- Deciduous trees planted on the south side of the home let light and warmth in during the winter, but shade the house during the summer.
- Use a plastic sheet or tape clear plastic film on the inside of windows during the coldest months
- Use tight-fitting, insulating drapes where possible
- Turn the thermostat down as much as 10% when asleep or out of the house
- Keep the heating system well-maintained and regularly clean/change filters
- Find leaks around doors and windows and using caulk or weatherstripping products to seal them
- Make sure to close the fireplace damper unless there is a fire.
See the Department of Energy website for a full list of energy-saving techniques.