Shopping for electricity can seem overwhelming at times. There are several different products (ie. Fixed, variable, index, etc.) out on the market and a variety of factors that effect the price per kilowatt hour.
What Is the Best Electricity Plan For You?
Whether you are shopping for your business or home, there are a few key pieces of information you want to ensure you understand before signing off on a new agreement.
On average, how much does electricity cost per month? Understanding your bill is important. When shopping for electricity in a deregulated market, you are shopping for your supply costs (made up of generation and transmission). Distribution will always come from your utility company because they still need to distribute the energy you purchased to your home or business.
Electricity supply costs can vary from commercial to residential rates and as a general rule of thumb, you want to always look at the current Price to Compare with your utility company verses what the current rates are being offered per kWh. Your usage fluctuates throughout the year so comparing the price per kilowatt hour is the easiest method for better understanding your energy supply options.
Whether you are a business owner or a homeowner, budget certainty is important. Your electricity bill is a great place to start cutting costs and seeing consistency. In most states across the county, you have the opportunity to choose who supply’s your energy.
Deregulation is relatively newer to some states and shopping for energy can be confusing but educating yourself on the different options and how to better understand your utility bill are crucial because you can find ways to cut costs by simply shopping for a new electricity supplier. But how do you find the best electricity rates?
Timing Is Everything
When you are searching for the best electricity rates, the time of year can make a bigger difference than you might expect. Supply and demand are key factors in determining the energy market. During extremely cold or hot seasons like summer and winter (Peak Periods), you’ll likely see a rise in rates because there is a higher electricity demand.
During mild seasons like spring and fall (shoulder months), rates will likely go down because the weather is more mild. The temperatures in these months do not require heavy cooling or heating. These are the best times to look into electricity rates, because they’re typically at their lowest.
A common misunderstanding across the energy market is that you need to wait until your current contract is expiring to shop for a new plan. With commercial customers, you can look at future start dates one, two, three years out from today and take advantage of current market conditions to save you money in the future. Residential is a little different and most commonly you need to wait at least 90 days from the end of your current agreement to review renewal options. But even 90 days out from the end of your agreement can be drastically different in the energy market and an opportunity to lock in a lower energy supply cost.
Location Matters, Too
Not all utility company rates are created equal. What rates are available to you are also determined by your business or home location. For example, if you live in western Pennsylvania in the Pittsburgh area, your electricity rates will look different from rates in eastern Pennsylvania in the Philadelphia area.
While some things like your location are out of your control, there are usage patterns that you can look at and see when you are spending the most money on your utility bill and where you can better understand why you were consuming more energy one month over another.
The following questions help you familiarize yourself with your energy consumption:
- When was your bill highest and lowest?
- What caused the spike in usage or a decrease?
- Based on what caused the change in usage, are there areas of your business or home that you can optimize for efficiency to see more consistent usage patterns?
Research Is Essential
Taking time to review rates and terms before you sign up for an offer is important. You’ll have to do your research and find the best quotes from reliable energy suppliers and consider the type of plan you want.
A fixed-rate plan will give you more control over your budget because you will agree to pay a specific amount times the kilowatt hours you use each month. More times than not, this is the product you want to use for your business because there are no pass through’s or other variables that can change unless there is a change in law that would affect all utilities.
Additionally, there are pass-through products, where your rate for the energy itself is fixed but the transmission and/or capacity tags are passed through. This can be beneficial in specific scenarios such as your company has plans for a large energy efficiency project like updated lighting and your demand will decrease drastically.
Trust EnergyPricing.com to Find You the Perfect Electricity Plan
All of the research to find the best electricity prices can be a headache. That is why you should let EnergyPricing.com handle it for you. EnergyPricing.com is an energy consulting firm that helps you find the best electricity rates through Reverse Auctions and our online marketplace for instant rates.
What exactly are Reverse Auctions? Reverse Auctions are auctions that we at EnergyPricing.com schedule in our cutting-edge software so that suppliers can compete for your business in real time in one location. Competition drives down the price and as the customer, you will have total transparency into the rates available specifically to your historical energy data.
Once the auction is complete, a dedicated Energy Advisor will help you review and choose the right supplier for your home or business. With no hidden fees or obligation to sign a contract at the end, EnergyPricing.com is changing the way you shop for energy. Contact us to get started today.