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Pay Less: How to Negotiate Your Utility Prices

ByKim Anderson
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Negotiate Utilities I’m sure you get lots of advertisements in the mail from all the utility companies in your area.  Where I live there are 3 internet providers, 5 garbage companies & 3 natural gas suppliers.  Every time I get an ad for utility prices from my company or competing companies I save it in a little folder in my kitchen.  Why?  Because that’s my leverage for negotiating my utility rates.

This is how I never pay full price for my utilities:

1. I always grab a pen, paper, calculator, utility rate advertisement & a calendar before getting on the phone.
2. When it’s time to renew my contract or I see a better deal on a non-contract service, I give customer service at my current provider a call.
3. With the better offer in hand, I tell the company that I received a better rate offer from ________________________ (fill in name of company) and that I am thinking of switching if they can’t beat or match the price.
4. If they say they cannot beat or match, I get off the phone as soon as possible and give the new company a call to confirm I’m eligible for service and I go through the process of switching over.  I work out any details related to how long my current service will continue to make sure I don’t overlap the old service with the new service.

5. If they say they can, start writing down what they say and be sure to check their math.

    • For example, I called my garbage company and told them I was going to switch to a new company because of an advertisement I got for $12 per month trash service for the first year.  The price would go up to $14 after the first year.
    • At the time, I was paying $16 per month for trash/recycle pickup.
    • The customer service person at my current trash company made me an offer for $13 per month. However, they were willing to lock that price in for 2 years.
    • So over a 2 year period (non-contracted), I saved money and didn’t have to switch.  She also offered to waive a fee I had been previously paying which saved me even more money.
    • I recommend that you do the math and make sure that it is cheaper in the long run.
6. I have also done this with natural gas service.  When it was time to renew my contract I pulled out all my ads and picked the cheapest rate.  I let them know that I was thinking of switching because the other company was cheaper.  I’ve never had them not match the rate.  They really don’t want to loose customers.
The one time this didn’t work was with my internet provider.  I had a $50 flat month to month internet provider who wouldn’t budge or upgrade me without a fee so I moved on.  Sometimes you win and sometimes you loose but I live by the motto- “If you don’t ask, you’ll never know.”
Let me know about any of your successful negotiations with utility companies.

Kim Anderson