Electricity is a revolutionary invention that Tesla gave us more than two centuries ago, which without we almost can’t imagine everyday life. That’s why this modern-day perk is an essential item in our budgets because we need it for almost everything – from charging the phone to running plants.
If you’re interested in electricity history, check out this page:
In the last few years, things have been happening in the world that affects the global economy, and this influence “spills over” to the prices of goods and services. Thus, recently the electricity rate has been going up, and suppliers have raised the fees of their services. For many households, that’s a significant impact on their monthly budgets. They need electricity, so they still pay those bills.
But you don’t have to settle for the current situation or supplier. The electricity market is very competitive, and so many suppliers operate there. You might be assigned to a specific provider, but you don’t have to stay with them forever. In fact, you can easily switch providers and thus ensure a cheap power supply for your household.
What Drives Electricity Prices?
The electricity rate is affected by many factors, and it generally follows movements in the oil and gas market, given that most of the world’s electrical energy is still generated from fossil fuels. Slightly different rules apply to electricity from renewable sources. It still has a significantly lower price per kilowatt hour, so more people are choosing this alternative energy supply.
But let’s get back to what the majority still uses. As said, market movements affect the price of electricity, as well as supply and demand. Next, the most important component when forming the price per kWh is the fuel price, with more and more plants cutting on coal and oil and turning to more eco-friendly fuels like natural gas.
Finally, factors such as the power generation ability of grids, their infrastructure, and their ability to satisfy the increased demand for electricity also should be considered. When the supply is limited, for example, due to a power plant or electrical line failure, consumers may pay a higher price for their household energy.
And last but not least, weather conditions should also be taken into account. Extremely low and high temperatures and large amounts of precipitation can lead to malfunctions on powerlines and outages, thus lowering electricity production. And when the grids have low energy supplies, they tend to charge them at higher rates.
Reasons to Switch Electricity Suppliers
Energy providers offer different electricity plans, so there’s a great chance that your bill will be significantly different from your neighbor, relative, or friend who lives only two blocks away. So you might wonder, is it time for a change? Can I pay less for my electricity consumption?
The first reason for a supplier switch is savings; the second could be predictability. Maybe you want to switch from the current variable contract to a fixed one, so you can lock in electricity rates and ensure price stability for a while. Or you can go with to a more cost-effective plan and thus save a significant amount during the contract duration.
Other reasons for switching providers can be a change in your electricity consumption, dissatisfaction with the current supplier, or simply the need to turn to eco-friendly electricity from renewable sources. In any case, when you decide it’s time for a change, here’s what you should do.
Know Your Current Needs and Costs
To start with and know what kind of plan you are looking for, you need to know your needs. Observing your electricity needs and average consumption during the previous period is a good start. If your power usage has changed in the past few months, whether higher or lower, and your current supplier can’t meet them, it’s time for a change.
Take a look at previous electricity bills. There you can find data on current consumption and compare it with the previous month, but also with the same period from the last year (if you were with the same provider). If you’ve noticed that power usage and prices have, you probably want to get them under control. On this web source, find more tips on calculating your energy consumption.
If your current contract is tied to a variable electricity price, maybe it’s time to switch to a fixed one and thus ensure the predictability of your costs for the next year or two. That can be a good move, considering the rising electricity prices rates all over the world. That way, you’ll protect yourself from price hacks and not-so-pleasant surprises when the electricity bill arrives.
Now that you know what you need, it’s time to shop around. For starters, look for rates that fit your budget. Still, the decision about switching electricity supplier isn’t easy, so you have to approach it studiously and by no means rush to the first offer that seems to be the cheapest – because that’s most often not the case.
Look for several suppliers and compare their total costs per kWh with what you pay with your current provider. You can also use handy online comparison tools for that. Then, go through other details, such as service fees and surcharge costs, and possibly look for add-on offers that can bring more savings.
While looking at other offers, don’t forget your current provider. If you have a problem with high prices, you may be able to negotiate a cheaper tariff or switch to another plan. You may get loyalty discounts if you are a long-term customer or other incentives if they want to keep you. If not, you’re free to proceed.
Check the Supplier’s Reputation
The electricity market is quite competitive, but not all suppliers in it are desirable for cooperation. So when you look for your next provider, make sure that the company is approved by government energy regulators. It means the chosen provider is reliable, trustworthy, and licensed to operate in your state.
By browsing these websites, you can get some helpful information, such as supplier history and customer claims and complaints. You can also find out the latter from online reviews or by asking friends or neighbors who cooperate with some these companies.
Another important item when choosing an electricity supplier is customer service. Poor support when you need help or have questions can become one of the main reasons to look for a new electricity provider. You need someone who’ll promptly respond to your inquiries and deal with your problem if you have one, so look for companies with lower rates and praised for stellar customer service.
Read Contract Terms
Before you sign anything, you have to check the contract terms. That applies to both your current plan and the new one. In the current contract, be sure to look for the clause on termination terms and fees you may pay in case of early contract ending.
In the case of a new contract for billigste strømavtale – bestestrøm.no, make sure that everything is clear before you sign.
You will change your electricity supplier when you’re not satisfied with the current plan and have found a new provider whose services and prices suit you better. That’s not a simple procedure because it requires research and comparison of many companies and their offers, so take your time to find the best option.