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Saturday, April 20, 2024

How to Compare Electricity Rates

Before choosing your energy plans, it is important to discern what best suits your needs. There are a few things to consider before deciding on the best energy plan. The goal is to look for the cheapest and most environmentally friendly plan. When choosing your energy plan and figuring out which one will save you the most money, here are some factors to consider.

Discover the Electricity Plans Available in Your Area HERE

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What Kind of Energy Do You Need?

The first portion to determine what kind of energy you need is what best suits your needs. Your specific case depends on several factors, including what kind of energy does your home use. The critical question here is, does your home use more natural gas or electricity or both? 

Energy suppliers provide data for various energy plans and rates which they offer to the customers. The data allows you to compare plans/rates of all available retailers and go for what’s the cheapest. So you can choose from all the available energy choices. 

Natural Gas vis-à-vis Electricity 

There are two dominant energy choices available in the market: natural gas and electricity. Since billing structures and rates might vary from time to time, it is essential to make well-informed decisions that are most cost-efficient. Natural gas is one of the most energy-efficient and costs efficient options out there.

There are two different measurement options, energy being in kWh and natural gas in therms. Moreover, there are differences in the costs related to transmission and generation in the case of electricity. Keeping these adjustments in mind, this table tells us that natural gas prices are two, even three times lower than electricity. 

Understand how Kilowatt-Hour (kWh) can have a impact on your overall energy bill when considering what kind of energy you need.

Being responsible citizens, we must consider environmental impact as well while choosing fuels. Natural gas is greener than electricity and other fuels as it is cleaner/greener to extract and deliver natural gas than to generate and transmit electricity. Carbon emission is also considerably lower with natural gas. 

If suited to your need, natural gas is the best energy choice. Choosing natural gas is not only cheap, it is also a wise decision to help the environment and reduce your carbon footprint. 

Are There Cheaper Renewable Plans Available? 

In case you want to explore options, there is a variety of energy fuels available. These are cost-efficient and greener in the long run. They use fuels that replenish themselves naturally and are renewable, including biomass, solar, geothermal, wind, and hydro. You can get to know more about these options and compare them to get the best deal. Then, with the help of your supplier, you can choose the best possible plan.   

What do You Pay for? The Charges! 

Although several costs go into generating/extracting and delivering energy to your home, they can be roughly broken down into two parts:

  • Standing Charge 
  • Unit Rate 

Standing charge is the fixed amount you are charged daily, and the unit rate is the price you pay per unit. The unit rate can fluctuate according to your energy consumption. Therefore, it is crucial to consider both factors while comparing rates. Each supplier determines its rate. For example, some might skip standing charges. However, the unit price is included in all contracts. 

Determine the Best Rates

It is important to know about electricity and natural gas rates to determine what type of energy plan you want to opt for. Fixed-rate and variable rates are the most common energy plans offered by energy suppliers. Doing your research before finalizing your decision is recommended for determining the best rate.

Fixed-rate Rate vis-à-vis Variable Rate 

Fixed-rate Rates are the most reliable option if you don’t want a shock every month. Fixed-rate allow you to choose a predetermined rate in kW/h or therm and pay that price till the end of your contract. In this way, you won’t have to worry about the increase in rates.  

Variable rates are a less reliable option as rates fluctuate all year round, based on market price. You might see a surprise increase in rates in your bill in the winter months as energy generation and transmission costs are higher in winter. In addition, suppliers might partially add increased costs to your statements. 

Our recommendation? Go for a fixed rate to avoid any unwelcome surprises and for your peace of mind. Fixed-rate guarantees that change in prices will not impact your bills; it is cost-effective in the long run. 

How to Compare Energy Rates Online?

When finding the best deal for you, running an energy comparison is critical to making the best decision. Various websites allow you to compare energy plans from the retailers available in your area. These websites are accessible and straightforward to use. Enter the required information to be presented with all the necessary data, which helps you compare rates. To use these websites, here are recommended steps to preplan:

  • Select the website from where you want the results
  • You might see keywords like ‘compare online’; click on them 
  • Enter your area or postal code
  • Select the energy plan (for example, gas, electricity or both)
  • With all of the necessary information being presented, filter and compare results

Discover the Electricity Plans Available in Your Area HERE

Buscando Español? Necesita una compañia de electricidad?

Start Saving on Energy Rates

Uswitch is also a user-friendly website that helps in energy comparison. MailFinance also offers an online energy comparison. Assess all the available deals offered by various retailers and decide the best possible option. 

Find energy suppliers in your area to assess which plan suits you best. You can have extensive research to see which ones offer electricity/gas the cheapest and most suited to your needs. Review rates from different companies and compare prices to get the best deal. We hope that this guide will help you find the cheapest and best possible deal. 

Learn more about your home energy rebates, rates, and plan options in your area HERE. We also invite you to explore these insightful articles.

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