Can You Negotiate Utility Bills?

What Bills Are Negotiable?

Just about every monthly bill you have is negotiable. This includes streaming services, cable or satellite television, newspaper or magazine subscriptions, home security services, lawn care services, cellphone and internet services, home and auto insurance, pest control services and gym memberships.

Utility bills can be negotiable, too, especially if you live in a state that allows energy choice—the option to choose among electricity and natural gas providers. Currently only 13 states and Washington, D.C., offer energy choice to residential energy users, but even if yours doesn't, you may still be able to get lower rates or otherwise reduce your monthly utility costs.

Not sure whether one of your monthly bills is negotiable? It never hurts to ask (and it just might help your bank account). Before you grab the phone, prep for success with our tips below.

Writer's Perspective

Karen Axelton

Senior Personal Finance Writer

A few years ago, our annual pest control bill went up 20%, so I called and asked, 'Is there anything you can do to lower this?' They immediately reduced it to the previous price and then took another 10% off without my asking. Now I call them every year at renewal time and always get a discount. Providers don't want to lose your business, especially when times are tough.

Learn more: How Often Should You Negotiate Your Bills?

How to Negotiate Your Bills Yourself

Doing your homework, knowing what to ask for and deciding what you're willing to accept can boost your confidence—and your odds of success—when negotiating utility bills. Follow these steps to negotiate your bills like a pro.

1. Gather Your Bills

Make a list of all your monthly bills, including utilities, subscriptions, memberships and services. Anything you pay regularly could be fair game for negotiation. Note how much you pay for each service. If the bill varies from month to month (like electricity), estimate a monthly average. Also examine what you're paying for—your service level, internet speed, number of phone lines and so on.

2. Assess Your Worth

Consider your value as a customer. The longer you've been a customer, the more motivated your provider may be to keep you. The size of your bill could give you an edge in negotiations too. For instance, a cellphone provider might value a customer with six phone lines more than a customer with just one. A history of paying your bills on time also boosts your worth to providers.

3. Identify Your Options

For each monthly service, identify your current provider's competitors. It's usually easier to negotiate when you have several companies competing for your business. Note any special discounts they offer that you may qualify for. For instance, cellphone carriers may offer reduced rates for teachers, students, medical professionals or first responders. You may also be eligible for discounts through your employer.

4. Research Prices

Check to see what your current provider and its competitors offer. Do new customers get lower introductory rates? Are there rebates, discounts, special packages, extra services or other goodies? Perhaps you now qualify for a discount you didn't when you signed up for the service, such as special senior rates. Write everything down.

5. Set a Goal

Use the information you've collected to set a goal for the savings you want from each provider and the minimum discount you're willing to accept. Providers may try to offer you extra services rather than discounts, such as premium cable channels for the basic rate, or ask you to commit to a contract to get a deal. Decide ahead of time what you're willing to do or settle for. Be careful not to agree to an offer that will ultimately cost you more, such as a discounted rate that rises after a certain time period.

6. Call the Provider

Set aside at least an hour for each negotiation. You may have to go through several layers of automation and customer service personnel before you reach someone who's authorized to offer a discount. Once you're on the phone:

• Keep it open-ended. Representatives may offer deals your research hasn't uncovered. Asking a general question like, "What can you do to help me lower my bill?" often gets better results than requesting a specific discount.
• Be nice. No matter who you're speaking to, always be polite and friendly. Take a confident attitude that assumes the rep is on your side.
• Be patient. Don't give up at the first "no." If the rep you're speaking to says they aren't authorized to adjust your rates, ask nicely for someone who is—and keep going until you get results.
• Use your research. If the provider isn't budging, calmly bring up your negotiating points, such as how long you've been a customer and what prices the competition offers.

7. Get It in Writing

You successfully negotiated a lower rate—congratulations! Before hanging up, ask the rep to email you a written confirmation of the discount, including details such as when your new rate kicks in, how long it's good for and any contract you agreed to.

Don't end the call until the email comes through. Otherwise, you could end up with no proof of your agreement and you might have to go through the negotiation process all over again. When you get next month's bill, review it to make sure it's what you agreed on.

Tip: Asking to cancel your service because it's too expensive usually gets you transferred to the company's customer retention or loyalty department. These reps are highly motivated to keep you as a customer and empowered to offer discounts to do so.

What to Do if the Utility Company Says No

If your service provider refuses to lower your rate, there may still be other ways to reduce your monthly bill. Ask about:

• Retention credits: If you can't get a permanent discount, try to negotiate a one-time credit. For instance, if a competing cellular carrier offers new customers a $150 credit, ask your carrier for a $150 credit to stay with them.
• Cost-reduction programs: Utility companies may give you bill credits or lower rates in exchange for reducing your energy or water use. For example, some utilities give you credits on your electric bill for reducing energy use at peak demand times, or charge lower rates for electricity used during off-peak hours.
• Rebates: You may qualify for rebates for installing energy- or water-saving devices such as low-flow faucets or smart home thermostats. Visit your utility's website or the national DSIRE website to find rebate programs near you.
• Convenience discounts: Some companies will lower your bill if you switch to paperless billing or set up autopay.
• Different service tiers: See if you can save money by switching your level of service. For example, can you change to a cellphone plan with limits on data, accept slower internet service or stream your shows with commercials?
• Annual rates: Paying for a year's services upfront or entering a contract can save you money. You may enjoy the flexibility of a month-to-month gym membership, for example, but you'll typically pay less if you sign a contract.
• Budget billing: Utility bills can soar at some times of year and dip at others. If unpredictable bills are playing havoc with your budget, see if your provider offers a plan that spreads your monthly payments into 12 equal amounts. Sometimes called budget billing or level-pay plans, these plans won't reduce the total you owe, but can make payments easier to budget for.
• Financial assistance: If you're struggling to pay your utility bills, ask your provider about financial assistance options. Many utilities have programs to help low-income consumers that can reduce, postpone or even cover your payments until you can get over a financial setback.

Tip: Many utility companies let you monitor usage via their website or app and get notifications if usage exceeds a certain level. This can help you keep usage (and costs) down and also warns you of potentially costly problems, such as a water leak.

Learn more: How Often Should You Reevaluate Your Budget?

Hire a Company to Negotiate Your Utility Bills

If researching dozens of cellphone plans or spending hours on the phone with customer service reps isn't your idea of fun, you can hire a company to negotiate your bills for you.

Example: Experian's bill negotiation feature, included with eligible paid memberships, enlists experts to negotiate your cellphone, cable TV, internet, satellite radio and home security bills directly with your provider. Negotiations typically take three to seven business days, and you keep 100% of any savings. We can also cancel subscriptions for you, including streaming services, entertainment apps, meal kits and more, saving you time and money.

You can find other bill negotiating services and apps by searching online. Before working with a service, read customer reviews and check for complaints or lawsuits against the company. Make sure you clearly understand the cost of any service before signing up.

Bill negotiators may charge an upfront fee, charge for membership or keep a percentage of the savings they negotiate for you. If you have limited time to spend on the phone or stand to save lots of money by negotiating, however, the cost of a service could be worth it.

Learn more: How to Manage Your Monthly Subscriptions

How Long Does Bill Negotiation Take?

Although it's best to allow at least an hour for each negotiation, the time it takes to negotiate a bill can vary widely. If you call during a busy time for the customer service team, for example, you might spend quite a while on hold. Getting transferred from one representative to another takes time too.

Once you've reached the right person, how long it takes to negotiate your bill depends on factors such as the complexity of the service, the options you have to choose from and how agreeable the rep is to making a change.

Bill negotiation generally takes longer if you use a bill negotiating service. For example, Experian's bill negotiation service generally takes between three and seven days. Since you don't need to be actively involved in the process, however, you probably won't notice the time spent.

Learn more: Simple Ways to Save Money

The Bottom Line

Negotiating your utility bills, either by yourself or with help from a negotiation service, can pay off in big savings. That leaves more money in your budget for the things that really matter to you.

If you're diligent about paying your utility bills on time, consider using that positive payment history to boost your credit. Experian Boost^®ø is a free feature that adds your eligible on-time utility, phone, streaming and insurance payments to your Experian credit report, which could improve your credit scores based on your Experian credit report.