Understanding Energy Prices (and get the best deal)

energy prices

When it comes to choosing an electricity provider for your home, the price is usually the first part taken into consideration. Electricity providers may have the power to set a competitive price, but many also offer incentive discounts and benefits for customers that can help to reduce their prices. Taking the time to shop around and compare different electricity providers will help you find the best price for your household.

When you are comparing energy prices, a good first step is to calculate the estimated total annual cost for powering your home. Some things to consider should include service charges, fees for moving or cancelling service, rewards and benefits for new customers, and any rebates that may be offered. It’s also good to keep in mind the ways electricity is used in your home, whether with kitchen appliances, televisions, computers, gaming consoles, and tools. It’s important to keep in mind that some of these services may need to be cut back on to save some money on electricity costs.

It is also helpful to know some of the terms commonly used by electricity providers to avoid becoming confused. For example, Single Rate* refers to a single rate for 24 hours a day, seven days a week. Peak rates mean that during certain days or times of day, higher rates may be charged, while off peak refers to a lower rate being charged at certain times. Knowing what some of these terms mean can help you out when looking at information provided by electricity providers, to help you better understand what the actual cost will be.

It also is important to understand kilowatt hours. These are the units which are used to measure your electric use. Some electricity provider’s bill you based on how much electricity you use each month in kilowatt hours. Some providers set a base line of how many kilowatt hours you may use in a month, then charge an additional fee if you exceed that limit. In this case you may want to consider tracking your electricity use in some way in order to see where your energy is being used and how much of it is being consumed.

Energy prices can vary from one provider to another, sometimes greatly. For this reason it is important to shop around to see which provider can give you the best deal. Some providers even offer service packages that may allow for an easier choice. A few also will let you customize your plan to best suit your household’s needs.

Choosing an electricity provider can be a complicated process, but with some simple knowledge of commonly used terms and pricing standards, it can be much easier to find the ideal energy plan for your family. Sometimes it might be necessary to make a few cuts in order to fit electricity plans into your budget, but most providers will be willing to work with you on pricing. Shopping around can be tedious, but it can help you find the perfect plan.

* It is also worth noting that these tariffs are available on many suppliers fixed rate tariffs which people could save even more money over a fixed period of time.

Image courtesy of The Telegraph

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The Skint Scot 2015