Why are fixed expenses like rent and utility bills difficult to?
The short answer as to why its hard to reduce utility bills, at least energy bills, is that we decide to pay for comfort as the temperature changes outside. I wont address rent because the occupant has far less control over that. Lets start with a basic scenario where you are renting and have your own electric & gas services, meaning that each has its own meter and is serving only your home unit. This will allow the information to apply whether you have only electric, electric and gas from one company, or electric & gas from two different companies or municipalities. Well also assume that there are no anomalies like hot water leaks or malfunctioning equipment, no extra visitors or abnormal amounts of time spent at home. Here is a common claim from a customer for an energy utilitys call center representative to hear: Im not doing anything different, dont have any new appliances, and my bill is a lot higher than last month. The customer is being honest and accurate. They kept the same thermostat setting, departed and arrived within the same ten-minute timeframe every day, washed & dried their clothes the same day and times as they always have, showered the same amount of times. We are creatures of habit and generally dont change. So what did change? The weather. Two thermostats usually exist in a basic home: One for the heater/central heating/air conditioning, and one for the water heater. When the temperature outside of the home changes beyond the setting of the thermostat, the heating or cooling will kick on and begin using a commodity electricity or gas. Example: A customer in Bakersfield is equipped with air conditioning and has their thermostat set to cool to 80F (~27C). On November 26, 2017 when it reached a high of ~84F (~29C), thats not bad the A/C will work to cool lower the homes temperature by about 4F (~2C). The average max temperature for that month is currently 71F (~22C), so most days the A/C wouldnt even kick on. But lets contrast that with August 2017, earlier the same year. August 29, 2017 reached a high of ~112F (~44C). How much is the A/C working now? Even with a high setting like 80F/27C, a temperature at which many are not yet comfortable, the A/C will work to lower the homes temperature by 32F/17C. That means its pretty much running non-stop, using a lot of electricity, raising the utility bill a lot. Well use the same house as another example, but this time consider heating thermostats: The customer has a central furnace fueled by gas and has a gas-burning water heater. The water heater is set to 120F (~49C). As hot water is used, cold water is added, and the water heater works to maintain the temperature. If the water heater is in an environment that isnt temperature controlled, which is often the garage and sometimes even outside, it has to work harder (burn gas more often) to keep that temperature because it is losing more heat through the walls of the tank. The furnace/heater to heat the home is set at the local utilitys recommended setting of heating to 68F (20C). Some may be a bit chilly at that temperature, but its a decent setting to save some energy. December 20, 2017 reached a low of 30F (-1C). That means heating the difference by keeping the temperature 38F (21C) higher than the outside. The average max temperature for December 2016 was 59F (15C). That means its pretty much running non-stop, using a lot of gas, raising the utility bill a lot. The electric & gas utility that serves my home states that 3-5% more energy is used for each degree you set your furnace above 68F (20C). That can stack up if you prefer something higher. They also have stated in the past that an air conditioner may use 3-5% more energy for each degree you set it below 78F (~26C). Because many use a tiered billing system where you pay more money per unit once you reach a certain number of units (a bit like the old cell phone plans) inefficiency or abuse of energy can raise a bill dramatically, not proportionately. Here is a link to my local energy utilitys energy saving tips. There are a lot of tips in 3 sections, cold weather / every day / warm weather tips. Most people Ive spoken with who have visited the page find something that helped them save. Energy Saving Tips