An article about electricity? Yes, you are right. Many people (myself included), often take electricity for granted. Not saying that we are ungrateful, but electricity has always been sort of a thing that’s just “there”.
Well, surprise surprise. Electricity actually deserves an article of its own as there are various factors to consider when it comes to choosing the right one for you. Depending on factors such as your budget and long-term environmental impacts, different electricity sources and gadgets are designed for different purposes.
There’s no one-size-fits-all ideal electricity plan, which is why it is all the more important to compare energy providers and energy plans. This article will provide you with eight useful tips and pointers for you to choose the best electricity plan for your household. Read on to find out!
Be Familiar With Your Electricity Usage
It is important to know how much electricity you use on average per month as different electricity plans have different charges. The available plans on the market are catered to both users with high and low energy usage.
To find out how much electricity you use, pull out your most recent utility bill and look for the electricity section. Your energy usage should be displayed in “kWh” which stands for the quantity of electricity you used over time.
Do note that your final electricity cost also includes other factors such as solar export, concessions, and tariff type.
If these terms sound a little foreign to you, go over the statistics with the retailers to get a suitable recommendation for your needs. They will know best!
Do A Thorough Market Research
Believe it or not, most utility markets are saturated with electricity retailers. Before you place all your eggs in one basket, make sure to compare electricity plans and providers across the entire market before making a decision.
A quick Internet search is a good place to start as you will be able to see the reviews and comments left by previous buyers. From there, you can start eliminating the ones you deem to be not fit and keep the ones that you like.
However, don’t limit yourself to just an Internet search. Get recommendations from word-of-mouth and visit some of your local retailers to find out their costs.
Don’t Be Tempted By The Discounts
Discounted packages and deals are part of the marketing strategy and are advertised to get people to spend more. Don’t be tempted. Instead, stick to your budget and your monthly average electricity usage. Use these two guiding factors to make your decision and not be swayed by the discount packages for other plans that are more expensive.
If you find it difficult to compare the prices, take your average electricity usage and calculate it against the cost structure of the plan as the stated discount may not be representative of your actual situation. Make a list of the costs of the various electricity plans and make a decision from there.
Read The Terms And Conditions Thoroughly
It may seem like a bore to read through all the terms and conditions, but this is important! For something as major as a long-term electricity plan, it is important that you go through the fine print as you’ll never know if there are any hidden fees or extra costs which might make the plan less worth it than it may seem.
If you are unable to spend some time going through the terms and conditions, you could outsource this task to a professional to do it for you.
Be Familiar With The Payment Conditions
Some electricity plans offer incentives to users who are able to pay their bills on time in terms of a lower cost. However, some of these plans also penalize users who do not pay on time. A minute over the stipulated deadline and you’ll have to fork out more.
If you’re confident in making punctual payments, go ahead and get the best deal. However, life is unpredictable and there could be unforeseen circumstances that might cause a delay in payment. That said, you could opt for plans that do not have this reward and punishment payment system. You know your situation best.
Use Concessions To Your Advantage
Depending on where you’re from, different credit cards offer different concessions. Before you go ahead and purchase any plans, check with your bank and retailers if the card(s) you own offer you any special rates. If you’re lucky, you could be saving hundreds of dollars in the long term.
Consider Opting for Green Energy
If you can afford green energy, I’d say go for it. Unlike conventional forms of energy that are generated through the burning of coal or oil, green energy harnesses energy from clean and natural sources such as sunlight, wind, and water.
The process of generating green energy produces lesser greenhouse gases and toxic pollutants that are harmful to the environment. If you opt for green energy, you’ll not only reduce your carbon footprint but also be able to contribute to making green energy more affordable for all.
One downside of using green energy is the high costs that you’ll have to pay upfront. This is why if you can afford it, you should support green energy so that the experts can continue to develop cheaper ways to provide green energy for more people.
Have An Exit Strategy
It’s better to be safe than sorry. So before you finalize your decision, you’ll want to know if your current plan has an exit fee. It could make a difference in deciding whether it’s worth it to switch to another electricity plan in the long run.
And there you have it. Eight useful tips to incorporate into your decision-making regarding electricity plans. If you have to have a takeaway from this article, you should remember to always do thorough research and compare different plans before making a payment. Look at internet reviews and head down to physical stores to sort out any queries that you have. Here’s to finding your ideal electricity plan!