Ways You Can Keep Your Electricity Prices Low

Electricity cost has become a major concern for many households

The rising cost of electricity in Australia has led many people to look at ways to reduce their electricity consumption. The Standard Energy Plan Of An Energy Provider (SESAP) has been developed to help energy retailers to understand that household energy needs are highest and how they can best help to reduce these levels. This article will discuss ways that households can reduce their electricity consumption.

There are two types of electricity rates – basic rate payable on a contracted amount of energy over a fixed period or per unit of energy, also known as the basic rate or tariff. Basic rate tariffs are regulated by the Australian Energy Regulator (AER). The AER sets the minimum amount of energy, a provider must supply to a customer, which is also the standard rate. Electricity suppliers must offer a competitive basic rate or face an alternative arrangement to encourage customers to switch to their chosen supplier.

Customers feel they have locked into a deal and don’t need to be tempted

Many suppliers have chosen to charge more for their products in order to encourage customers to stick with them. Some ways this is done is by offering a rate plan known as price lock. Price lock ensures that your chosen electric supplier won’t increase their prices for the first few years of your contract. Customers feel they have locked into a deal and don’t need to be tempted by competitors who may be able to offer a lower price after the initial period. In order to take advantage of price lock, contact your existing electric supplier.

The other form of rate regulation is to calculate your usage based on estimated usage, rather than actual usage. Your utility company’s standard usage measurement system (SMS) determines how much energy your home uses in a month. This is usually based on average usage over a three year period, or on average usage over a year to year period. If your usage is significantly higher or lower than this average, you may be eligible for a rate plan known as a rate comparison program.

discount deals on electricity prices in order to retain customers

The second way to keep your electricity price low is to take advantage of times when your utility is offering special promotions or rate freezes. For example, during festive seasons and school holidays. During these times demand for electricity is at its highest, so utilities are usually willing to offer discounts and deals on electricity prices in order to retain customers. It is also worth looking out for special deals available around the time of one of these periods, as you may be able to get a great deal on your next bill. In addition to rate-prices, you may also be eligible to receive a bonus on your next bill, so make sure you ask your utility what special offers they have available at any given time.

Last but not least, consider purchasing some green energy. While residential rates do not fluctuate much, on-peak electricity prices have been shown to increase slightly. While green energy has its drawbacks, it does represent a significant cut to your electricity costs. One way you may be able to save money on your electrical bills is by installing solar panels or wind turbines. Although you will have to invest in these types of devices to start saving, they are definitely worth the initial cost.

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