Yes, you can negotiate your utility bills!
Did you even know you could do this?!
Many electric, gas, water, internet, cable, and phone providers offer ways to cut your bills or, at least, make them more manageable month to month. Calling your utility providers every few months and simply asking what they can offer you will often yield rewards you would never have otherwise known existed.
Here are some tips for negotiating your utility bills.
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Simply Ask for a Discount
Once upon a time, utilities were monopolies, but, typically (depending on where you live) not anymore. Since you now have the ability to shop around, these companies now have an incentive to keep you as a customer. The ball is now in the customer’s hands. These companies know that and will work to remain your service provider.
Call Customer Service every six months and simply say, “My bill is too high. What kind of discount can you give me?” It is also a good idea to have some knowledge of what their competition is offering for new service setup. For example, you can say, “Company X is offering a $200 credit to switch my service. Can you match that credit?”
Often times the customer service representative will have a limited number of offers to present to you. If you do not like those offers, ask to speak to someone higher up.
Things to keep in mind
There is an art to negotiation.
First, it really is true that you attract more flies with honey than with vinegar. Be polite and friendly, not pushy and demanding.
When the customer service rep answers your call and says their name, respond with a cheerful, “Good afternoon, Tom! Thanks for taking my call. I was wondering if you could help me out with something.” Then, proceed to ask for a discount.
Make sure to flatter them with a true story. “My sister uses Company X as her internet provider and is very happy with their service and costs, but I just really like your company and was hoping we could work out a better plan.”
Second, in negotiations, you typically want to refuse their first offer. This might be the time to ask for someone higher up the chain of command. If there is no better offer made, then you can always accept their first offer.
Lastly, if you are a gambler, you can refuse their offers and call back again to try your luck with another representative.
Ask if They Provide Unique Discounts
Many utilities offer basic flat-rate discounts for taking advantage of paperless billing. You could shave a modest $5 a month off your bill by simply opting out of paper statements.
Another common discount is signing up for the automatic draft option. That is, a service provider might discount your bill 5-10% a month if you allow them to automatically debit your bank account for payment on the same day every month.
Most electric companies will offer discounts or rebates if you install or use certain products. For example, they might offer a discount if you switch to a Smart Thermostat or a high-efficiency water heater. Simply visit your service provider’s website to see a list of current rebates and discounts.
Ask your provider if they have free equipment that they can install that will lower your utility usage. This little trick could save some money on your monthly bills.
Most utility companies offer senior discounts, so definitely take advantage if you can. But, you won’t get the discount unless you ask.
Be sure to ask if they offer student or military discounts.
Many utility companies (particularly electric, gas and water companies) will offer flat-rate pricing. This may or may not lower your overall costs on an annual basis, but it can make those bills that fluctuate wildly from month to month more manageable.
They simply average out your previous 12 months of bills and charge you the same rate every month. Yes, this means your electric bill will probably be higher in the Spring and Fall, but it will be lower in the Summer when you are running the air conditioner more often. This definitely helps if you are trying to stick to a tight budget.
Finally, if you are in a sudden emergency financial situation (job loss, or illness) and you just do not have the money to pay for necessities like water, electricity, and gas, let your utility companies know immediately. Do not wait for them to turn off your service. Most utilities offer assistance programs for those in need.
Have you ever successfully negotiated a utility bill? Share your story with us in the comments.
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