The Jones family has decided to use monthly billing to better manage their household expenditure and to minimise the potentially nasty surprise of a high bill. They use approximately 3,000 kWh per quarter (which is a typically $700 per quarter).
Based on seasonality and historical usage patterns, GEE’s analysts estimate 1,000 kWh usage per month (or a bill of $233). The Jones’ predicts their actual usage in-line with the estimate though it could be higher as Mrs Jones’ worked from home during this period. Following an actual meter reading the Jones’ quarterly usage had increased by 250 kWh (versus total estimated). The diagram below depicts the billing profile when estimated monthly billing is used.