Have you ever wondered why your residential energy service bill goes up and down to such extremes? Even if you don’t increase your rate of consumption from one month to the next, you can notice a significant difference in the price you pay each month.
This is due to the many factors that go into play when determining what consumers pay for electricity in any given area. Keep reading to learn about some of those factors and to discover a way to fix your rate so that the ups and downs aren’t so dramatic for your pocketbook.
Your energy provider must utilize natural resources in order to create the electricity and gas that you need to carry out your modern lifestyle. Some of the options currently available include:
Solar and wind technology is advancing at a rapid rate, so you can expect more energy providers to make use of it to more extensive degrees in the years to come. Coal is currently one of the most affordable options, but it is also the option that presents the most damage to the natural environment. Natural gas is the more expensive option, but it is a reliable source of energy that is more efficient.
Energy providers and electric companies must maintain power lines, gas pipes and other networks of equipment in order to deliver their products to consumers. This takes a lot of money, and many suppliers don’t have access to the transmission lines. They simply rent it from larger utility companies, essentially providing the actual product but renting the delivery system.
Whether your energy provider maintains these networks directly or works with another company to ensure their product is delivered consistently, this costs money. That cost will get passed onto you as the consumer interested in receiving the service.
Do you know how far your home or business is from the power plant supplying your electricity? The further you are from the facilities creating the energy you consume, the more you may pay per month for those services. This may not be a huge factor in a deregulated market, but it was something to consider when purchasing a home prior to deregulation.
Now that you understand some of the main factors that contribute to the price you pay for energy, it’s time to start comparing rates between providers to determine the best option for you. This is determined largely by the companies serving your area and the amount of competitiveness in your market.
If you aren’t sure which energy supplier is best for your residential energy service now and in the long term, contact our consultancy for assistance. We will help you maneuver this complicated market without charging you a dime.