Understanding your electricity bill can be daunting, with its long list of numbers and unfamiliar terms. One of these terms which may appear on your bill is “deferred balance”. When you see this term, it is important to understand what it means and how it may affect your finances. A deferred balance is the amount of money you owe to your electricity provider that you have yet to pay. This blog post will explain everything you need to know about deferred balances, including what it means, how it is calculated, and how to pay it back. Knowing about deferred balances can help you better manage your electricity bill and make informed decisions about your energy usage. With this knowledge, you can make sure that you always have an accurate picture of your electricity bill and avoid any unexpected surprises.
Using average billing makes managing your monthly electricity budget simple. The average person uses the same amount of electricity every year, with predictable summer and winter highs. However, if you sign up for average billing, you’ll even out your bills’ seasonal highs and lows and pay an average sum all year. To calculate your electric bill, use our bill calculator.
Your accumulated deferred balance will be fully due on your next invoice if you continue doing business with Reliant, or payment plans can be made. Your accumulated deferred balance will be immediately due in full if you leave Reliant. If you have a credit balance, it will be applied to your final bill and the balance will then be refunded.
The total difference between your monthly Average Billing amount and what you would owe if you were not enrolled in Average Billing is the deferred balance amount. Your monthly bill will indicate the amount of the deferred balance. Your bill will be increased by 1/12 if the balance is positive. 1/12 of the bill amount will be deducted if it is negative. The deferred balance will start to accrue if you’re a new Average Billing customer in the second month. If you discontinue Average Billing or switch electricity suppliers, the deferred balance needs to be settled in full.
What Happens at the End of My Contract on Average Billing?
The difficulty with billing generally arises at the conclusion of your contract term.
It’s simple to get out of debt if you have a deferred credit balance (negative balance). Your credit balance can be applied to future electricity bills if you decide to stick with your current provider. Or, you may request that they refund the balance. If you decide to change providers, your current provider must still pay you the remaining balance.
It could be painful if you have a deferred debit balance (positive balance – you owe them money). You will be required to pay the entire balance due to your current provider if you choose to switch to a new electricity provider. Even if you switch away, your provider might be able to work with you on a payment schedule. Alternatively, you can continue using that provider, and they will put your debt on a new average billing schedule.
This is why keeping an eye on your deferred balance is crucial. If you have a large deferred debit balance (i. e. Your options are limited because you are accruing debt to your electricity provider.
While managing a budget with average billing may seem like a great idea, it does require monitoring. You can avoid unpleasant surprises on your future electric bills by understanding how your electricity provider determines your average bill and keeping a close eye on any outstanding balances.
Average billing may be an option to consider if you have a fixed income and require regular billing amounts. This is especially true if you have stable usage and have lived in your home for a while. But keep an eye on the deferred balance on your monthly bill to make sure it doesn’t just keep growing.
You might not be paying enough with average billing if your energy usage varies significantly throughout the year or if you are planning a home improvement like a new pool. A significant true-up payment to your electricity provider could result from this underpayment.
How FPL Budget Billing is calculated
Florida Power & Light Electricity Bills? FPL Budget Billing Don’t DO IT!
FAQ
What does a deferred balance means?
The deferred balance could represent a credit or future debt. If you pay more than your average monthly bill due, the additional funds will be applied to any deferred balance.
What happens to deferred balance on FPL?
Your average monthly bill amount will be increased by 1/12 of your deferred balance each month, which will result in a slight variation in your monthly bills.
What is budget bill deferred?
A deferred balance is the difference between your budget bill amount and actual bill charges that are kept on file each month. Your account will be credited if the deferred balance is negative so that it can be used in subsequent months to lower your bills during periods of higher consumption.
What does year to date deferred balance mean?
The total difference between your monthly Average Billing amount and what you would owe if you were not enrolled in Average Billing is the deferred balance amount. Your monthly bill will indicate the amount of the deferred balance.
Reference:
https://www.directenergy.com/faqs/texas/payment-arrangements/average-billing/deferred-balance-average-billing
https://www.reliant.com/en/residential/customer-care/billing-payments/average-billing.jsp