Can you negotiate with utility companies?

Asked by: Dr. Amir Crooks  |  Last update: July 6, 2025
Score: 4.1/5 (58 votes)

Negotiating with utility providers requires a proactive approach. Contact your provider and express your interest in discussing your current plan or exploring available options. Be polite, patient, and persistent throughout the process.

Are bill negotiation services worth it?

Although customers can have success negotiating their own bills, professional negotiators can usually secure a better rate because they know exactly what to ask for. They know exactly what a customer should be getting.

What is a reasonable utility bill?

The average cost of utilities in the U.S. is $500 to $600 per month or $6,000 to $7,200 per year, including electricity, gas, water, sewer, phone, internet, and streaming or cable TV services.

Why is my electric bill $200 a month?

High electric bills often come from using outdated or inefficient appliances around your home. Your utility itself could also be a factor – you may have been moved to a different pricing schedule or had an overall rate increase.

Can utility companies affect your credit?

Utilities bills typically have very minimal impact on improving your credit score. However, it is important to pay your bills on time because a utility company may report your account as delinquent, which can negatively impact your credit score. Consumer Financial Protection Bureau.

HARVARD negotiators explain: How to get what you want every time

42 related questions found

How to remove utility bills from credit report?

How to remove negative items from your credit report yourself
  1. Get a free copy of your credit report. ...
  2. File a dispute with the credit reporting agency. ...
  3. File a dispute directly with the creditor. ...
  4. Review the claim results. ...
  5. Hire a credit repair service. ...
  6. Send a request for “goodwill deletion” ...
  7. Work with a credit counseling agency.

Can utility bills go to collections?

Bills that are unpaid for months may be sent to collections, including loan and credit card debt, medical bills, utility bills, government debts and more. Once a collection account appears on your credit report, it may stay there for seven years.

What runs your electric bill up the most?

What uses the most electricity in my home?
  • Air conditioning and heating: 54%
  • Water heating: 16%
  • Refrigeration: 4%
  • Lighting: 4%
  • Appliances and electronics: 23%

How much is an average electric bill for a 2 bedroom apartment?

Studio Apartment: $50–$80. 1-Bedroom Apartment: $60–$100. 2-Bedroom Apartment: $100–$150. 3-Bedroom Apartment: $120–$200.

Why is my utility bill doubled?

So if you still find your electric bill increasing, there may be issues you need to address in your own home. The most common contributing factors are outdated appliances, thermostats, lightbulbs, or insufficient insulation. Here's what you can do to help reduce your household energy usage.

Does wifi count as a utility bill?

Internet bills are considered a utility bill, just like telephone bills, because they provide services to the home or business that are considered necessary for daily activity.

How much money should go to utilities?

Median monthly utility costs on a state-by-state basis run from around $350 in New Mexico, Utah, and Colorado to about $400 in New York State and California up to a high of $450+ in Florida and South Carolina.

What is a normal gas bill?

According to the figures, the average cost of natural gas in the U.S. is a little over $100 per month. Gas is used to heat your home, warm your water, and often powers your stove or oven. Although $100 is the average monthly cost, the amount you pay can vary depending on the time of year.

Are utilities negotiable?

Negotiating with utility providers requires a proactive approach. Contact your provider and express your interest in discussing your current plan or exploring available options. Be polite, patient, and persistent throughout the process.

When should you not negotiate?

Don't negotiate if you're happy with the entire package

But there's more to a job than just the money. It could come with good perks (like the ability to work remotely more often), better work-life balance, or even a better learning experience.

What to say to get your bills lowered?

Consider asking about specific deals you might be entitled to—students, military personnel, and veterans are often eligible for certain discounts. And of course—mention you're looking to switch providers. “They usually want to retain you as a customer,” says Roth.

What is the most expensive utility?

The most expensive utility is cell phone service, at $1,844 per year, followed by electricity at $1,644 per year. Typical utility costs include electricity, gas and/or heating oil, water and/or sewer, cable, cell phone, internet and streaming services, and sometimes trash and recycling.

What uses the most electricity in a home?

Which home appliances use the most electricity?
  1. Heating and cooling: 45-50% The largest electricity consumer in the average household is your heating and cooling appliance. ...
  2. Water heater: 12% ...
  3. Lighting: 9-12% ...
  4. Refrigerator: 8% ...
  5. Washer and dryer: 5% ...
  6. Electric oven: 3% ...
  7. Dishwasher: 2% ...
  8. TV and cable box: 2%

Is AC included in an electric bill?

Depending on where you live, your heating and cooling costs are included in your electric bill. Some jurisdictions include Heating, Ventilation, and Air Conditioning (HVAC) costs as part of a comprehensive electric bill. Other regions distinguish heating and cooling electric usage.

What drains electricity the most?

The 10 home appliances that consume the most energy
  1. Heaters. By far the biggest user of energy in homes are heaters, accounting for 31.3% of a home's total energy consumption. ...
  2. Water Heaters. ...
  3. Cooling Appliances. ...
  4. Refrigerators. ...
  5. Clothes Dryers. ...
  6. Lighting. ...
  7. Home Entertainment Equipment. ...
  8. Cooking Appliances.

Does unplugging appliances save electricity?

While unplugging appliances can reduce your energy costs, you have to decide whether the savings are worth it. The United States Department of Energy estimates that you can save $100 per year on your energy bill by unplugging your appliances. That comes out to $8.33 per month (or about 27 cents per day).

Do air purifiers use a lot of electricity?

Room air cleaners are portable, electric appliances that remove fine particles, such as dust and pollen, from indoor air. A standard room air cleaner, operating continuously, uses approximately 450 kWh per year in electricity. This is more than the energy used by some new refrigerators!

Can utility bills hurt your credit?

Paying non-credit bills like rent, utilities, and medical expenses on time won't bump up your credit score because they're usually not reported to credit bureaus. But if they're very late or in collections, they'll likely get reported and affect credit scores negatively.

What happens if you don't pay your electric bill and move out?

Utility Shut-Off: If the utilities were in the tenant's name, but they left without paying the bills, the utility companies might disconnect the services due to non-payment. This situation could affect future tenants or the landlord's ability to sell or rent the property.

Should I pay a bill that went to collections?

Once your debt is sent to collections, it's important to address it rather than ignoring it. Know that you have options: Even if you have trouble reaching an agreement with the creditor, you can still get help from a nonprofit credit counseling service or an attorney.