Average electricity costs by industry size
Electricity bills can become a major drain on cash flow during the summer months. It might be time to compare industry electricity rates. By reducing your electricity bills you are an easy way to earn extra money.
A typical residential electric bill will usually run between ten and twenty-four cents per kwh. If your home runs appliances that use a significant amount of electricity, you should be able to gather enough information on the average cost of using them. For instance, if you have a television set, an air conditioner, and several other devices, each one will add up to more than ten kwh per month. Depending on how much power your appliances consume, you should be able to find a list of the top electricity bill paying appliances.
When you divide the cost of using these items by the number of who they consume, you will get a good idea of how much you should expect to be billed. A good rule of thumb is to expect to be billed at least fifteen cents per kilowatt hours. If you have never been billed before it might be best to check with your supplier to see what the standard rate is for your area. In some cases, depending on the type of fuel used in the generator, you can be charged a higher rate.
There are three different types of standing orders, the first being a fixed rate. This means that the price will not change, no matter what happens. The second type is a variable rate. With a variable rate, your supplier may raise or lower your bill at any time without your permission.
The third type is a minimum charge. With this system, if your kwh or electricity use is over a set limit, your bill will be capped. The minimum charge is usually around two percent of your bill, although it varies from one provider to the next. Many businesses find that they are regularly charged more than twenty or thirty percent of their bill by their suppliers. It is important to understand the cap on your minimum bill so you do not overpay for your energy use.
It is important to monitor your bills carefully so you can make adjustments as necessary to your energy consumption and your supplier. Your supplier will send you periodic energy billing records. You will need to obtain your records from your supplier and keep them current as long as you own your building. This ensures that you are charged an accurate rate. Knowing your energy usage is important for your bottom line, so you can make adjustments to reduce your bills or request a refund from your supplier if your meter readings show you are over your minimum usage levels.