When you enroll in budget billing, your monthly bill is the average of your last 12 months of Tipmont payment amounts. It is a free service for qualifying business and residential members.
Tipmont offers two budget billing programs: fixed and variable. Here, we’ll explain the differences. Both are free to use! Please contact our team if you need additional help.
Budget billing: Fixed vs. Variable
Imagine you’re paying for electricity like paying for lunch, but the price can change depending on how hungry you are. Some months you eat a lot, some months, you eat less. That can make it tricky to plan!
Essentially, variable means your payment changes slightly each month, fixed means it stays the same each month.
| Variable | Fixed | |
|---|---|---|
| Your Payment | Changes a few dollars each month. | Stays the EXACT same all year. |
| Is it a surprise? | Not a big surprise, just small changes. | No surprises at all during the year! |
| Best for… | People who are okay with small changes. | People who want to pay the same amount, no matter what. |
Variable Budget Billing
Think of this like your lunch money changing a little bit each month based on what you’ve eaten over the past year.
- Tipmont looks at what you used for the past 12 months and finds the average.
- Each new month, we look again at your newest 12 months (the last year) and average it again.
- So, your payment amount can go up or down a little each month.
Example:
- Last year, you used more electricity in the winter and less in the summer.
- When it’s cold again this year, your payment may be a little higher, because the average adjusts.
It’s like a bill that keeps changing a bit, trying to stay close to what you actually use. Even better, because of the small adjustments, there’s no need to
Fixed budget billing
This one is more like buying a lunch card for the whole year. You pay the same amount every month, no matter how much electricity you use.
- Tipmont looks at what you used during the past 12 months.
- We figure out an average monthly amount, and you pay that same number every month for the year.
- At the end of the year, we check to see if you used more or less than expected and adjust later if needed.
Example:
If your bill averages 100 a month based on last year, you pay 100 every month—steady and predictable. You always know exactly what your bill will be. It’s super easy to plan for!
At the end of the year, Tipmont reviews your account. Did you actually eat more lunch than you paid for? You might have to pay a little extra. Did you eat less lunch? You might get some money back! Then we’ll set a new lunch price for the next year.
Ready to get started?
Both plans are great ways to avoid those super high surprise bills in the summer and winter! They just do it in a slightly different way.
Ready to get started with budget billing? Visit our Budget Billing page for enrollment instructions or contact our team for more information.
