What every Apartment Resident should know before choosing an electricity plan.

kilowatts

That’s what the average apartment uses in electricity each month.

Why it matters – If you live in an apartment and are comparing electricity plans based on the 1000 kWh rate listed on each plan’s Electricity Facts Label (the rate most comparison sites use to rank plans), you might be in for an unpleasant surprise when you get your first bill. This is because some plans achieve their low rates by offering ‘bill credits’ that only apply once you hit a minimum of 1000 kWh of usage.

Don’t fall for the 1000 kWh pricing trap!

Example Advertised Price at 14.5¢ - if you use exactly 1,000 kWh every monthAdvertised priceUse any more or less and your price goes up

The average apartment uses less than 1000 kWh each month.

Let’s look at a real-world example to show why a ‘bill credit’ plan might not be ideal for apartment residents. While this plan had one of the lowest advertised rates at exactly 1000 kWh (10.5¢ per kWh), it charged one of the highest rates (20.7¢ per kWh) for usage below that threshold. The low 10.5¢ rate only applied because of a $100 bill credit that activated once the usage hit exactly 1000 kWh

The issue for most apartment residents is that their monthly usage is usually well below the 1000 kWh threshold required to qualify for the $100 credit. As a result, they don't receive the credit and end up paying a much higher rate than the one advertised - in this example, nearly twice as much.

“Advertised” rate at 1000 kWh: 10.5¢

Actual rate at 660 kWh: 20.7¢