There are so many different things to consider when choosing a cheap and right energy plan. Electricity rates differ from state to state or region to region. Many factors cause this variation, so it is advised to check the area, providers, and plan before selecting any electricity provider.
Many factors affect the energy rates, and some of them are listed below-
1) Fuel cost- As we all know that fuel generates the electricity we use in our homes, this fuel can either be fossil fuels, hydropower, solar power, or the energy of the wind. The prices of these fuels vary, and this is one of the major determining factors of the energy rate.
2)Infrastructure cost- The power is generated in a power plant, and the cost used in constructing, operating, and maintaining it is again added up in the electricity rate.
3)Distribution or transmission cost- Any electricity that is produced needs to be distributed among its users. The transmission cost is generally the highest cost of any power company. This transmission requires regular maintenance, so the consumers get an uninterrupted power supply. All these costs are then transferred on to the consumers in the form of high electricity rates.
4) Seasonal spikes- The electricity plan increases during summers, as that is the peak consumption time. When this consumption increases, the power companies work overtime, use more than usual resources to fulfill this increased demand, there reflecting in your bill. So it is advised to choose a fixed energy plan before the summertime, so you can enjoy an uninterrupted power supply at a low cost.
5) Location- If you are living in an area that has an abundance of sun or water or wind, then producing renewable electricity be quite cheap. The consumers can check with the energy companies that provide renewable energy, which is bound to be lower than other energy plans in that area.
Know how EnerWisely can help you find the best and the cheap energy plan
EnerWisely carefully analyzes your energy data using its trademark technology Energy Fingerprint and gives you ways to cut off the wastage and stop overpayment. Once you know your consumption pattern, Energy Matchmaker will provide you with a list of energy plans that will suit your requirements. Stop wasting your time and energy, join Enerwisely, and start saving.