How can Choosing Your Energy Supplier help lower electricity bills?
Your energy bill is a monthly quote of how much electricity you used in the prior month, along with how much you must pay to keep your power on for the next month.
Beyond that, if you know where to look, it contains useful information regarding your energy usage and energy rates. While it varies location by location, most electricity bills are broken down into two parts.
- Distribution or Delivery Charges: This is the cost that you pay to the utility company for maintaining the poles, wires and transmission stations to get the electricity to you.
- Supply Charges: This is the cost of the actual electricity you have used. This can also be called the generation charge, and is determined by the price per kilowatt hour x monthly number of kilowatt hours.
By knowing the parts of your utility bill and the calculations behind it, there a few quick and simple things you can do to save money. First, by using less electricity, you’ll end up paying less.
The second way is by choosing a cheaper electricity rate. If you live in a deregulated state, you may have the option to switch your energy supplier, and pay considerably less for your electricity. While it depends on the state and local utility, switching to a different supplier can mean HUGE savings.