If we were to talk about inventions that changed the world, electricity would come first. Today, it’s almost impossible to imagine life without electric energy, although humanity has functioned like that for millennia. Nevertheless, modern people enjoy and utilize this perk to the fullest.

The development of science and technology has contributed to the fact that we can generate power in different ways. People come up with new ways of generating energy to make it ecological and affordable. Check this page for some interesting facts about electrical energy we use every day..

Factors That Affect Electricity Rates

As said, electricity is not free. It takes time, effort, and money to produce, store, and safely transport it to consumers. That requires certain infrastructure and workforce, and of course, the fuel from which electricity is generated. Power plants also have their own operating and maintenance costs.

Electricity rates are constantly changing because too many different factors affect their formation. For instance, natural gas prices fluctuate on a daily basis, and there are certain seasonal changes based on the supply and demand ratio. For example, electricity is more expensive during the summer when people need more power for cooling.

The electricity price is also affected by the location (different states and even cities have their own regulations on power consumption and its prices). Also, an essential factor is the weather, which can have different influence depending on the fuel source used in electricity production.

For example, if energy is obtained from water power, heavy rainfall contributes to the increase of the water mass, which will generate more power. That creates space for a low price per kilowatt. On the other hand, rain and snow don’t benefit wind turbines because they interfere with their operation and thus reduce power production.

Finally, the rates may depend on the type of consumer. They are mainly divided into industrial and residential ones. Due to the huge consumption, electricity is usually cheaper for commercial users. Households pay higher rates but have a greater choice and flexibility when choosing an electricity plan and provider.

Nobody wants to break the bank when the energy bill arrives. And you don’t have to, but you should put some effort into researching and comparing utility companies’ rates. With the increasing competition in the market, there are many different utility providers to choose from. That can help you find the lowest electricity rates and make a contract that won’t crash your budget.

Know Your Needs

To know what kind of electricity plan you need, the first thing you need to know is how you use energy. You can easily calculate the average consumption if you take bills for the previous 12 months. But what really matters is how you spend those kilowatts.

For example, consider your heating. Do you use natural gas in combination with electric energy or electricity only? Certainly, in the second case, you will need more kilowatts. Next, pay attention to what period of the year and time of day you use more power. All of this will help you determine the consumption pattern, which is a good basis for finding a suitable electricity plan.

Check Your Current Plan

Providers have a difficult task to retain and attract new consumers. That is why they are constantly inventing new ways and tools to improve power production, make it economical, and thus offer consumers the best prices. That’s how they come up with various electricity plans, which you can take advantage of.

Changing your current plan is necessary when your needs have changed, or the power bills burden your budget. Now is the perfect time to check your current plan and see what you can do about it. You probably keep some previous energy bills, so take a peek.

The bills should clearly state the price of electricity per kWh, your consumption, as well as price fluctuations that occur after you have consumed a certain amount of electricity and during the day (day and night tariff). These rates can also vary depending on whether your plan is linked to a variable or fixed electricity price per kWh.

Variable or Fixed-Rate Plans

If you currently have a flat-rate plan, you might think of switching it to a variable one or vice versa. Both have good and bad sides, so it’s advisable to find out about them before choosing a new electricity plan.

When you opt for a plan with locked-in rates, you get security and the possibility to “predict” how much your bills will be. That way, you can budget your costs and keep an eye on optimal consumption. These rates remain the same during the contract, regardless of events in the global market.

Variable rates give you more freedom in choosing providers but also uncertainty. Considering the many factors that form the price of electricity, many things can affect its increase, and some of them happen almost every day. So if the global rates go up, your energy bill goes up too. But if prices fall, variable-rate plans can bring significant savings. Plus, you have more flexibility when it comes to changing providers.

In both cases, you need o find out the price of kilowatt per hour of consumption. Most providers have different tariffs for consumers who use 500 kWh, 1000 kWh, or 2000 kWh monthly. This is exactly why it’s good to determine your energy needs. That way, you’ll know in which range you should look for the appropriate plan.

Know What Fees You Pay

Many people never pay attention to the items on the power bill. They simply settle the amount they owe and only later wonder why they pay so much. If you would pay just a little attention to your energy usage, things would be much more favorable for you.

Your power bill includes several items. Of course, the price per kWh is the most important, but some fees can add up to this cost. Once you figure out which expenditures you can affect and which you can’t, you can think of ways to waive them or just lower your bill.

You can read the paper bill or visit bestestrøm.no and check it online. You’ll see data on your consumption during the billing period and pricing for services necessary to deliver electricity to your home. There is also data you can use for comparison and determining your power usage pattern. It refers to power consumption in the previous month, the month before that, as well as the same month last year.

The unchangeable fees are the utility delivery charges because they don’t depend on your consumption. It’s a cost that goes to maintaining the power network and ensuring constant power delivery. But you can lower your bill by cutting usage and capacity costs. For instance, you can avoid turning on major power consumers during peak hours or switch them for more energy-efficient models.

Things like late payment and cancellation fees can appear on your bill if you don’t pay it on time or decide to cancel it before the termination date. Make sure to get information on these costs before signing anything.

Is Deposit Obligatory?

Unlike many things you pay for first and then use, electricity is the other way around. You pay for this service at the end of the billing period, which is handy as you can arrange it on your payday, for instance. But that waiting represents a risk for the utility provider because some users may not settle their obligations on time or simply don’t pay them. Considering such actions can generate financial losses for these companies, they’ve found a way to mitigate this risk.

Many electricity providers require new consumers to make a deposit. In most cases, it amounts to about a fifth of the estimated cost for the annual power consumption. This cost is refundable after the end of the contract if you have paid your obligations on time.

Utility companies may ask for a deposit if you do not have a utility payment history or it is poor due to previous problems with non-payment. Also, this cost awaits you if you change provider without having settled the debts to the previous one.

If you have found a good electricity plan, but the provider requires a deposit, there are ways to avoid this cost. The first and most important is that you’ve paid your bills regularly and have no active complaints from the previous provider. Of course, your credit score can play a significant role in this. When this parameter is good, it shows your responsible behavior towards obligations.

Are Prepaid Plans a Good Idea?

More and more utility providers include electricity prepaid plans in their offers. In this way, they allow you to buy a certain number of kilowatts upfront, which enables better usage and cost control, greater flexibility, and convenience. It comes in handy for facilities where you don’t need electricity all the time, like vacation homes.

These plans don’t require a credit check, so you can enroll even if your credit score is low. You won’t have to pay a deposit or commit to a single provider for a long time. These plans come with fixed rates, so there’s no risk of extra costs if the electricity rates change.

The inventor of electricity, Nikola Tesla, aspired to make his invention free and available to everyone, but that hasn’t happened (yet). So you have to pay for energy in your households and commercial premises. Many providers operate on the market, offering a variety of electricity plans, so you can choose the one that fits your needs and budget.