What is Budget Billing?

Budget Billing is a pre-authorized payment plan that spreads your estimated annual propane usage and tank rental costs evenly over 12 monthly payments. Instead of paying larger propane bills during the colder months when you use more fuel, Budget Billing helps make your monthly propane expenses more predictable throughout the year.

If you’re wondering what Budget Billing is, how your monthly payment is calculated, or what happens when your propane usage changes, here’s what you need to know.

How Does Budget Billing Work?

Normally, you pay for propane as you use it. This means your propane bills can vary significantly throughout the year, particularly in Ontario where propane consumption is often much higher during the winter heating season.

With Budget Billing, your estimated annual propane and tank rental costs are distributed evenly over a 12-month period.

This gives you a more consistent monthly payment instead of larger bills following winter propane deliveries.

How Is My Monthly Budget Billing Payment Calculated?

Your monthly Budget Billing payment is based on:

• Your estimated annual propane consumption
• Your annual propane tank rental cost
• Applicable HST

These estimated annual costs are combined and divided into 12 monthly payments.

For existing Budget Propane customers, we use your historical propane consumption to help calculate your expected annual usage.

If you're a new customer and don't yet have a full year of propane usage history with us, we will estimate your consumption based on factors such as your propane tank size and the appliances in your home or property that use propane.

Why Does My Account Show a Credit or Outstanding Balance?

Seeing your account balance fluctuate while you're on Budget Billing is normal.

Your monthly Budget Billing payment stays relatively consistent, but your actual propane consumption does not.

For example, you may use relatively little propane during the warmer months. During the colder months, you may receive larger or more frequent propane deliveries as your heating needs increase.

As a result, your account may sometimes have a credit balance and at other times show an outstanding balance.

This doesn't necessarily mean anything is wrong with your Budget Billing Plan. It reflects the difference between your consistent monthly payments and the actual timing and cost of your propane deliveries.

Can My Budget Billing Payment Change?

Yes, we conduct two reviews a year, around spring time coming out of the warming season and early fall entering into warming season. Budget Billing is calculated on a September to September basis.

Budget Propane continues to monitor your account throughout the year. If your actual propane usage is significantly different from what was estimated, we may make an adjustment to your monthly payment.

These adjustments help keep your payments aligned with your actual propane consumption and reduce the likelihood of a significant difference between what you've paid and what you've used.

Your propane usage can change for many reasons, including weather, changes to your household, adding or removing propane appliances, or changes in how frequently you occupy the property.

What Does Budget Billing Cover?

Budget Propane's Budget Billing Plan covers:

• Propane usage
• Propane tank rental

It's important to remember that your tank monitor, installation and service work are NOT included in your Budget Billing monthly payment.

Any installation, repair, maintenance, or other service work completed by Budget Propane must be paid for separately.

What Are the Benefits of Budget Billing?

The biggest benefit is predictability.

Propane consumption in Central Ontario can vary considerably from season to season. If propane is your primary heating source, you will typically use much more fuel during the winter than during the summer.

Budget Billing spreads those estimated annual propane costs across the entire year, helping you:

• Maintain more predictable monthly household expenses
• Avoid paying your estimated annual propane costs primarily during the heating season
• Plan and budget for propane expenses throughout the year
• Reduce seasonal fluctuations in your propane payments

Should I Still Monitor My Budget Billing Account?

Yes.

We encourage all Budget Billing customers to periodically review their account and propane usage throughout the year.

Remember that Budget Billing is based on estimated annual consumption. Your actual propane usage can be higher or lower than expected, which is why your account balance and monthly payment may occasionally need to be adjusted.

If you have questions about your payment amount, account balance, propane consumption, or Budget Billing Plan, our team is happy to review your account with you.

Have Questions About Your Budget Billing Plan?

Budget Billing is designed to make propane expenses more predictable by spreading your estimated annual propane usage and tank rental costs across 12 months.

We encourage customers to monitor their plan throughout the year and contact us whenever they have questions.

Have a question about your Budget Billing payment or account? Contact the Budget Propane team and we'll be happy to review your plan with you. Don’t have time for a phone call, no worries! Our Budget Billing team can be contacted at budgetbilling@budgetpropane.net!

Frequently Asked Questions About Budget Billing

Is Budget Billing the same as paying for each propane delivery?

No. When paying normally, the amount you owe is based on the propane delivered to you. Budget Billing instead spreads your estimated annual propane and tank rental costs across 12 monthly payments.

Why do I owe money if I make a Budget Billing payment every month?

Your Budget Billing payment is based on estimated annual usage, while your actual propane deliveries vary throughout the year. It is therefore normal for your account to move between a credit and an outstanding balance.

Why do I have a credit on my Budget Billing account?

A credit can occur when the amount you've paid through your monthly Budget Billing payments is temporarily greater than the cost of the propane and tank rental charged to your account.

Will my Budget Billing payment always stay the same?

Not necessarily. Budget Propane monitors Budget Billing accounts throughout the year and may adjust your payment if your actual usage differs from the amount originally estimated.

Does Budget Billing include my propane tank rental?

Yes. Your annual tank rental cost is included when calculating your Budget Billing payment.

Does Budget Billing include propane installation or service work?

No. Tank monitors, installation and service work are not included in your Budget Billing payment and must be paid separately.

How is Budget Billing calculated for a new Budget Propane customer?

If you don't have previous propane consumption history with us, we estimate your annual usage based on information such as your propane tank size and the propane appliances at your property.