Electricity 101

Why Is My Electric Bill So High? Common Reasons and How to Take Control

By
Gexa Energy
April 26, 2023
|
5
minutes read
By
Gexa Energy
Publication Date:
Last updated:
October 1, 2025

If you've opened your latest utility statement and found yourself asking, "Why is my energy bill so high?", you're not alone. Rising electricity costs can be frustrating, especially when usage seems consistent. Many factors contribute to fluctuating energy bills, some obvious and others less so.

At Gexa Energy, we understand how important it is for homeowners and renters to make sense of their electricity bills. In this article, we’ll break down the most common reasons why your electric bill is so high, offer practical solutions, and guide you toward more manageable monthly expenses.

1. Seasonal Weather Extremes

One of the most common reasons why your electricity bill is so high is due to seasonal changes. In the summer, air conditioners often run non-stop to combat heat, while in the winter, electric heaters or space heaters can also lead to energy spikes.

Even a few degrees difference in thermostat settings can cause a major increase in your bill.

What You Can Do:

  • Set your thermostat to 78°F in summer and 68°F in winter when you’re home
  • Use ceiling fans to improve air circulation and reduce HVAC load
  • Schedule regular HVAC maintenance to ensure efficiency

2. Poor Home Insulation and Air Leaks

You could be paying more simply because your home isn’t keeping the cooled or heated air inside. If you’re wondering why your power bill is so high, it might be that your insulation is letting your energy dollars slip through the cracks, literally.

Check for:

  • Drafty windows and doors
  • Unsealed attic spaces
  • Gaps around plumbing or electrical outlets

What You Can Do:

  • Seal windows and doors with weather stripping or caulk
  • Add insulation to attics or crawl spaces
  • Close blinds and curtains during the hottest parts of the day

3. Phantom Energy Use (a.k.a. “Vampire Power”)

Electronics that are plugged in, even when turned off, can still draw small amounts of electricity. Multiply that by multiple devices in your home, and you may have found a hidden reason why your energy bill is so high.

Common culprits include:

  • Televisions
  • Coffee makers
  • Game consoles
  • Chargers and power strips

What You Can Do:

  • Unplug devices when not in use
  • Use smart plugs or timers to reduce standby power
  • Invest in energy-efficient electronics with an ENERGY STAR® rating

4. Outdated or Inefficient Appliances

Old refrigerators, dishwashers, or washing machines can use significantly more energy than newer, energy-efficient models. If you’re getting high electricity bills, take a look at the age and energy rating of your major appliances.

Tips:

  • Look for labels indicating high kWh usage on older machines
  • Consider upgrading high-use appliances first, such as HVAC systems or refrigerators
  • Run dishwashers and washing machines only when full to save power and water

5. Incorrect Billing or Meter Errors

Sometimes, the issue isn’t with your usage at all. Billing errors or incorrect meter readings can also lead to surprising spikes in your electricity bill.

Steps to Take:

  • Compare your current bill with previous months
  • Review the usage graph and billing cycle dates
  • Contact your utility provider if something seems off

At Gexa Energy, we offer transparent billing and usage tracking tools so you’re never in the dark about your energy consumption.

6. Increased Household Occupancy or Activities

Have you recently had guests, started working from home, or added a new appliance? Changes in household behavior can lead to noticeable increases in electricity use, and it might help explain why your power bill is so high.

Examples:

  • Remote work leads to longer computer usage and lighting
  • More laundry and dishwasher cycles due to more people at home
  • Extra devices like game consoles, streaming devices, or space heaters

What You Can Do:

  • Monitor your daily routines and look for patterns
  • Use smart thermostats or home monitoring tools to identify spikes
  • Educate household members about energy-saving habits

7. Lighting and Home Design Choices

Leaving lights on throughout the house, using incandescent bulbs, or living in a home that lacks natural light can all contribute to a higher bill.

Solutions:

  • Switch to LED lighting, which uses about 75% less energy
  • Install dimmer switches or motion sensors
  • Maximize daylight by keeping blinds open during daytime

8. Your Energy Plan Might Not Be Right for You

Even with all the right energy-saving habits, the rate you’re paying could be higher than necessary. Understanding your energy plan, and whether it fits your lifestyle, is key to lowering your bill.

If you’re locked into a high-rate plan, or if your usage doesn’t align with your rate structure, that could be a major reason why your electricity bill is so high.

What You Can Do:

  • Review your energy plan’s rate structure (fixed vs. variable)
  • Compare your plan to others available in your area
  • Contact your provider to discuss better options or consider switching

9. Smart Devices and Modern Tech Usage

Smart homes can make life easier, but they can also contribute to higher energy usage if not managed wisely. Wi-Fi routers, smart speakers, cameras, and home automation systems are always on and always drawing power.

Tips to Manage Smart Energy Use:

  • Disable unnecessary features like motion tracking or 24/7 recording
  • Set devices to “eco mode” where available
  • Use smart power strips that cut power when devices are idle

10. Utility Rate Increases

Finally, if you’re still wondering “Why is my power bill so high?”, it could be due to utility rate hikes in your area. Even if your usage remains steady, changes in the cost per kilowatt-hour (kWh) can result in a higher bill.

How to check:

  • Look for announcements from your electricity provider about rate changes
  • Examine your bill to see the cost per kWh now versus a few months ago

What You Can Do:

  • Shop around for more competitive rates
  • Monitor usage closely with energy tracking tools
  • Evaluate whether a time-of-use plan could help you save

Understanding the Bigger Picture

If you're searching for answers as to why your electricity bill is so high, the reality is that it's often a combination of many small things. Whether it’s extreme weather, energy-hungry devices, or a rate plan that doesn’t match your lifestyle, understanding your unique usage patterns is the first step toward control.

See if Gexa Has a Solution for You

High energy bills are stressful, but they don’t have to be permanent. By identifying the root causes of increased usage and choosing the right electricity plan, you might be able to reduce costs and make smarter energy choices.

If you're still wondering why your energy bill is so high, it might be time to reassess your electricity provider. At Gexa Energy, we offer straightforward plans, competitive rates, and tools to help you track and manage your usage more efficiently.

Ready to take control of your energy costs? Check out Gexa Energy's plans today and discover how easy it can be to get a better handle on your power bill.

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Gexa Energy purchases renewable energy credits (RECs) from renewable generation resources throughout North America to match 100% of the energy sold under your electric plan. The RECs Gexa purchases represent the renewable attributes of power generated from a variety of renewable energy sources, including, but not limited to, the sun, wind, geothermal, hydroelectric, wave or tidal energy, and biomass or biomass-based waste products, including landfill gas.