Why are my energy bills higher in the summer?

Beat the Heat or Break the Bank? Why Summer Power Bills Skyrocket in Texas

Just because the outside temperatures are high, doesn’t mean you

Summer in Texas is synonymous with intense heat, and as temperatures rise, so do power bills. Many Texans find themselves grappling with significantly higher energy costs during the summer months- even if your energy usage hasn’t changed much throughout the year. 

But what exactly drives these seasonal spikes? Let’s dive into the factors that cause your energy expenses to surge when the heat is on. 

1. The AC Hustle: Air Conditioning and Energy Use

During the Texas summer, air conditioning isn’t a luxury; it’s a survival tool. Temperatures can sizzle to the point where leaving your AC off feels like a trial by fire. Since air conditioners consume more power than almost any other home appliance, they are the main culprits behind your skyrocketing energy bills. Keeping your home cool can cost a pretty penny, even if you keep your programmed temperature in the mid 70’s. It just comes down to outside temperature, the hotter it is outside the harder your AC has to work to keep your home cool. 

2. Peak Demand: How Energy Consumption Affects Prices

Summer is not just about beating the heat—it’s also the peak season for energy demand. High demand leads to higher energy prices due to the basic laws of supply and demand. Think of it like buying a cold drink in a desert; you'll pay top dollar. This surge in usage means you’re paying more per kilowatt-hour, and suddenly, your power bill looks beefier than a Texas-sized burger. 

If you’re on a month-to-month plan, you will be more affected by seasonal price spikes because your price is dictated by what’s going on in the market. We highly recommend finding a fixed rate plan so you can unlock financial security every month by knowing ~about~ what your bill will be and no longer ride the price rollercoaster that can be the energy market. 

3. Thermal Expansion and Efficiency Losses

It’s a scientific fact: heat causes expansion and inefficiency. Power plants and electrical grids are less efficient in extreme temperatures, which means it takes more energy—and more money—to generate and deliver electricity. Moreover, the increased likelihood of power outages in high heat leads to additional costs for emergency maintenance and grid stabilization, which can inflate your bill even further.

If you’ve noticed your bill has increased, take a look at your TDSP charges. If your usage has stayed relatively constant month over month with a fixed rate, then your TDSPs charges may be the culprit of a higher bill. 

4. Variable Electricity Rates: Timing is Everything

In many parts of Texas, electricity rates vary based on the time of day and overall usage levels. During a hot summer day, when the demand for electricity reaches its peak, rates can spike significantly. Using energy during these peak hours can be as costly as gambling in a high-stakes game—your everyday appliances turning into little slot machines, with each use pulling the lever on your finances.

Note: At Octopus Energy, we don’t offer any variable rate plans, but this is still good information to keep in mind when shopping for an energy plan. 

If you’re finding that you have higher bills than usual, do a quick survey of your home to check for sneaky culprits that could be flying under the radar wreaking havoc on your energy bill. Look for cracks in your windows and doors, close your fireplace flue, and unplug any unused appliances or electronics. 

As mentioned above, also check your TDSP charges to see if there’s been a rate increase. Keep in mind, Octopus Energy has no control over any TDSP rate changes so if you have any feedback, please contact your TDSP directly. 

If you want to keep your energy bills in check, we recommend checking out our seven tips for saving $154/mo on energy costs. By understanding these factors and managing your energy use wisely, you can mitigate the impact of summer heat on your power bills and enjoy the season without too much financial stress. Stay cool and savvy, Texas!