Why Does My Electricity Bill Vary So Much?

Electricity bills are a necessity these days and most households depend on electricity to do even the simplest of tasks like cooking, turning on lights, or doing simple household chores. Most electricity users are unaware of what they are paying for their electricity consumption. It is vital to look at your electricity usage closely to find out whether you are receiving fair deals from your electricity supplier. Here are three common electricity tariff mistakes that you should be careful with and which could quickly knock down your monthly electricity bills dramatically.


The first mistake

that most people make when choosing an electricity supplier is selecting a fixed rate energy tariff. This is the most expensive type of tariff you can get and comes with a lot of restrictions. For example, your energy tariffs cannot go below a set level for a certain period after which they increase to a level above the fixed rate. So you must ensure that you ask the supplier whether the current tariff you are paying is above or below the fixed rate. If it’s below, then you can negotiate to get it increased and if it’s above, then you can shop for competitive prices.


The second common error

that most homeowners commit is under-estimating their electricity use. Many people incorrectly assume that they will always use less electricity than they do, so they mistakenly apply for and obtain electricity tariffs that are way above their actual usage. To get a precise figure, you need to calculate your annual energy usage in kilowatts (kWh). Look up online a consumer energy bill and you will be able to calculate this easily, based on the date you obtained your bill.


The final mistake

is getting a dual fuel or green tariff. These types of tariffs usually come with either a fixed rate or a renewable energy component, so make sure you calculate correctly. It may be that a dual fuel tariff might be cheaper, but as it only lasts for a limited period, you won’t get your money back very quickly.


The other common mistake

people make is to try and reduce their electricity consumption by changing their electricity supplier. In many cases, this will lead to lower monthly bills, but you also compromise the security of your power supply. Many people may not realize that when you switch suppliers, your gas and electricity tariffs will be affected. Therefore it is usually best to stick with your current supplier and just pay a bit more each month to protect yourself against any eventuality of a sudden decline in prices.


There are three main reasons

why your electricity bill may vary. The first is your usage, the second is the amount of load that you are using, and the third is your connection speed with your local electricity distribution company. If you are careful to manage your usage of electricity, then these factors should not have a major effect on your bill. However, if you have a lot of lights, use your computers, and tend to turn your heater on and off quite a lot, then you will be able to save money on your electricity costs, especially if you live in an area where the average residential customer uses approximately 500 kWh or more each month.

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