Wednesday WTF: March 29, 2017
Hydro Rates
Happy Hump Day! This topic has been on the top of everyone’s mind lately. It has become more political than economical lately. Hydro rates are a very hot topic. I am going to give my take on this subject. For what it is worth I have a different opinion than most. One thing I also know about my opinion is that it probably isn’t worth all that much in this world full of noise. That being said, here is my take on how expensive hydro has become.
My hydro bill per month ranges from $80-$120 per month. In the winter months, it is lower. I have gas heating. In the summer months, it becomes dramatically more expensive. This is due to me using my central air conditioning. I will now describe my usage. I am a single person in a 2 bedroom, 2 bathroom apartment. It is fairly well insulated. I am rarely home. I don’t actually use much hydro. Mainly because my beautiful apartment is where I sleep and get ready for work. That’s it. By all logic, my bill should be cheaper. My lights are off when I leave the home at 8 AM and don’t come on until I get home at 10 PM. I “use” electricity for maybe 3 hours a day.
The way I feel about hydro is simple. The price is the price. I very much enjoy being able to turn on the shower and have hot water come out. I also enjoy turning on the lights anytime and having them come on. I could be more energy conscious. The problem is I enjoy my hot showers. I also do laundry when I feel like it, not when it is more cost effective. So because I live like this I know that I will pay more for hydro than I could/should. I refuse to not use air conditioning in our insanely hot summers. I blast that A/C. For that luxury, I will pay. I grew up without A/C and will not go back.
To me, 3-4 dollars a day is a fair price to pay for electricity and water. If I was so keen on saving that money I would. But I know myself and I have built it into my budget that it will be that price. For those who pay much more, I say this: When discussing “outrageous” costs it is important to have a level of reason. If hydro is “breaking” you then maybe you have to re-evaluate your budget. Maybe you are spending too much elsewhere. To me, electricity is a priority. Beers at the bar is a luxury. If it came down to a choice between the two then I would choose hydro. I am fortunate that I do not have to make that choice. I work hard to not have to make that choice.
That lady crying to Justin Trudeau was in my opinion, unreasonable. Her story just didn’t add up. $1500 a month for hydro seems absurd. Does she have baseboard heaters? Does she try to conserve energy? Is she running a grow-op? Why is the bill that high? It really makes no sense. The way I see it is this. Fixed expenses are fixed. Variable is variable. Unless you are cutting down on all that you can, including using less hydro, do you really have a reason to complain?
I do think the rates are too high, don’t get me wrong. My point is if an extra $100 a month is killing you it might be time to re-evaluate your budget. With proper planning and hard work, you can weather any storm. That’s financial freedom. Nothing will shake you. Kathleen Wynne be damned!
Thanks for reading my post today and tune in tomorrow for “Thursday Trim the Trash Time.” Happy Savings Friends!
“It is essential that we stop worrying about money and stop resenting our bills.” – Louise L. Hay
https://budgetboss.ca/tuesday-march-28-2017/
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Joseph James Francis is a Financial Advisor. You can find him on various social media platforms and at budgetboss.ca.