How to save money on your utility bills

Utility bills — electricity, gas, water, internet — are unavoidable, but many households pay more than they need to. Whether because of inefficient habits, outdated equipment, or simply never reviewing their providers, there is often meaningful savings available with a modest amount of effort.

Review your energy usage habits first

Before switching providers or buying new equipment, the quickest wins usually come from adjusting habits. Turning off lights when leaving rooms, reducing the thermostat by a degree or two, washing clothes at lower temperatures, and not leaving devices on standby can all reduce your energy bill without costing anything.

If you have programmable or smart thermostats, make sure they are set to reduce heating and cooling while you are away or asleep. Heating and cooling typically account for the largest portion of household energy use.

Check whether you are on the best rate with your provider

Many utility customers stay on default tariffs that are not the best available. Contact your current provider and ask whether there is a better rate or plan for your usage level. Many providers will offer a discount to retain customers who ask — it costs nothing to call.

Compare energy providers where competition is available

In states with deregulated energy markets, you may be able to choose your electricity or gas supplier. If you are in one of these states, comparing suppliers and switching can reduce your bills. Check your state public utilities commission website to see what is available in your area.

Review your internet and phone plans

Internet and phone plans are worth reviewing at least once a year. Promotional rates often expire without notice, leaving you paying a higher standard rate. Calling your provider and asking for a retention deal, or comparing competitors, can often reduce these bills — especially if you have been a customer for several years.

Look for assistance programs if your budget is stretched

If energy bills are creating genuine hardship, there are federal and state assistance programs that may help. The Low Income Home Energy Assistance Program (LIHEAP) helps eligible households with heating and cooling costs. Many utility companies also have hardship programs for customers struggling to pay. Contact your provider directly and ask what is available.

Small upgrades that pay for themselves

LED bulbs, low-flow showerheads, and power strips with off switches are all low-cost upgrades that can reduce ongoing utility costs. They are not dramatic changes, but over months and years they quietly reduce what you are spending.