Fixed or variable electricity rates: which price is right for you?
Interested in switching suppliers? Want to get the best deal for your energy but aren't sure which type of price is best for you? Look no further. Here we explain the differences between fixed and variable prices, break down the pros and cons of each type of price, and give you our recommendation of which price to choose.
According to the US Energy Information Administration, the average US household in 2013 used about 10,900 kilowatt-hours annually, or just over 900 kWh per month. However, consumption and price vary greatly across the United States, with Louisiana having the highest average annual consumption (15,270 kWh) and Hawaii the lowest (6,176 kWh).
Most of us tend to only look at the bottom line when we pay our electricity bills. But a lot goes into that final number, which is why it can change so dramatically from month to month. Understanding how electricity pricing works is the first step in taking charge of your energy bills. Here we explain everything you need to know about the price of your electricity, and what you can do to keep it as low as possible.
How much does electricity cost in the US in 2015? While the cost of electricity can vary depending on your area, how much power you use, your utility and/or your supplier, here we break down some of the statistics about the cost of energy in 2015.
Time of use pricing has existed for awhile, but is still not widely used. Here we explain what time of use pricing is, and whether it's right for you.
Many electric and gas companies are now offering Budget Billing as a way to get rid of uncertainty and equalize bill payments over the duration of your contract.
How does it work? Your energy provider will look at your last year's worth of consumption, estimate the same usage for the next year, and increase the bill slightly to account for inflation, and then divide the amount over twelve months. At the end of the year, you may owe your provider an additional payment for energy consumed beyond their estimation.
Take a look at the picture below. It's a graph from the Energy Information Administration showing monthly changes in retail electricity prices. Notice a pattern? Electricity prices seem to rise during the summer, and then fall during the winter. Hmm, why would that be?
The fluctuation of electricity prices
Your electricity bill measures your consumption in kilowatt-hours (kWh). Yet your appliances - such as your toaster, microwave, or fridge - indicate power ratings in kilowatts (kW). What is the difference between the two? Our guide will help explain so that you can better understand your electricity consumption.
Check out how the natural gas price per therm or cubic foot is determined, and the market factors that affect natural gas prices to drive the gas rate higher or lower. Many natural gas (and electric) consumers have the power to choose a provider operating in a deregulated energy market.
With Time-of-Use plans, electricity rates per kilowatt-hour vary according to peak and off-peak electricity hours. This means that consumers can control how low (or high) their electric bill will be depending on the time of day (or even the day of the week) when energy is used. These types of plans can be beneficial since reducing usage during peak times can generate big savings.