Choosing an electricity plan requires careful consideration of several factors. It’s essential to choose one that fits your needs and lifestyle.
Electricity plans are available in various lengths, including monthly, quarterly and yearly. Understanding how long you want your contract to last can help you choose the right energy plan.
Know Your Electricity Company
Whether you live in a regulated area or a deregulated region, knowing your electricity company can make all the difference in how much you pay. This information can also help you find a better deal from another company if you change your energy supplier.
You can find out which company supplies your electricity by referring to a recent bill. Alternatively, you can use an online tool to determine your electricity provider and tariff.
If you’re from Texas, it is ideal for getting this information as soon as possible to give the best electricity rates in Texas. For instance, if you’re buying a new house and need to know which utility providers serve your new address, ask the previous owners or real estate agents.
Once you know who provides your electricity, you can choose an energy plan that will fit your budget and energy usage needs. Different projects include fixed and variable rates and term lengths ranging from a few months to several years.
Your monthly electricity usage is a critical aspect to consider when selecting an electricity plan. It is vital to understand your usage pattern and the time of day you use more electricity.
If you want to save money on your electricity, consider a non-peak energy plan, which can reduce your usage and lower your monthly bill. It can also help you avoid paying for extra services that may not be necessary during peak times.
Know Your Needs
Choosing the right electricity plan is crucial in keeping your energy bills low and within your budget. Before selecting a project, you must know your needs and electricity usage patterns.
Your electricity bill is based on how much electricity you use (kWh) monthly. Electricity providers list prices at three different increments – 500 kWh, 1000 kWh and 2000 kWh – so it’s crucial to compare plans that offer the price per kWh that best matches your energy usage habits.
You’ll also need to decide whether you want a fixed or variable rate plan. Fixed-rate plans lock you into a fixed price for your contract and protect you from volatile energy prices.
Variable rate plans, on the other hand, fluctuate based on where the market settles on a daily and monthly basis. These are more suitable for consumers who follow market prices closely and are willing to switch suppliers frequently.
Another option is a time-of-use plan. These plans charge less or offer free electricity during discounted times of the day, like before 4 p.m and after 9 p.m; on weekdays, but their prices can rise during peak times of the day – between 5 and 8 p.m on weekdays – so it’s essential to factor that into your shopping.
Know Your Electricity Usage
Knowing your home’s energy usage is one of the most important factors in choosing the right electricity plan. This includes knowing how many kilowatt hours (kWh) you use each month and understanding how the amount of electricity you consume is calculated and what rate you pay.
You can better understand how much electricity you use by reviewing your previous utility bills. You can also check the energy usage label that’s on most appliances.
Another critical factor is the times you use your energy. During peak hours, you can pay higher prices for electricity than at other times.
You can save money on your electricity by using less during the day and reducing the number of electrical gadgets in your house. You can do this by turning off lights when not in use, washing clothes and dishes in the morning, and avoiding the TV and computer in the evenings.
Finally, a smart meter or app can track your electricity consumption. An app, like Power Wizard, connects to your meter to provide real-time and historical usage data.
This way, you can avoid paying for excess energy usage and be more proactive about your electricity bill. It also helps you make informed decisions about your next electricity purchase. You can also choose a renewable energy plan to help support clean, carbon-free electricity.
Know Your Options
With the recent deregulation of electricity and natural gas in many states, consumers can shop for a new plan and rate. However, it is essential to understand that not all plans are created equal, and some may be more beneficial for your lifestyle than others.
Fixed-rate electricity plans are stable and offer more consistency than variable rates do. These are great for shoppers in areas where temperatures change throughout the year, and they can help you avoid being surprised by unexpected bill hikes.
Variable-rate energy prices vary by time of day and are based on a certain amount of energy usage over a specific period. This can include peak hours when demand is highest.
Some electricity companies also charge a capacity fee to ensure they have enough electricity supply available during these times of high demand and other ancillary costs that differ from supplier to supplier.
Often, these fees can make the difference between a fixed-rate and a variable-rate electricity plan.
The best way to find the right electricity plan for your needs is to know what you want and use a comparison site to compare total costs across 12 months of usage. That will eliminate teaser rates and other gimmicks that could cost you hundreds of dollars more than you should pay.