Are you worried about how much you are spending on utilities each month? Today, I am sharing 5 Reasons You Should Compare Electricity Rates to determine if you are getting the best deal. Yes, you can compare not only your rates month to month but between companies! Below are some of the reasons this is a good idea, and how to go about making comparisons.
5 Reasons You Should Compare Electricity Rates
Some regions have multiple energy carriers to choose from. If you live in an area that offers a choice between different utility companies, you may want to compare their going rates. However, the bulk of this post is going to focus on comparing your month to month utility bills. By focusing on monthly charges, you can find discrepancies that are costing you money that could be utilized to pay off debt or create an emergency savings fund.
Different times of day and seasons offer better rates for usage
Have you checked with your electric company for savings regarding when you use the most energy? One of the best ways to compare electricity rates is to look at your bill to see the time fluctuations of when you use the most energy. If you work outside the home, you may be using less electric during daytime hours. In many instances, that will give you a discounted rate from your electricity provider.
A simple phone call can answer if your local utility company(s) provide a discount for limited use during set hours each day. Working around those hours to do the bulk of your TV watching, computer usage, or even cooking may be easier for some families than others. It is well worth a few minutes on the phone!
Bad wiring can lead to excess charges
If you feel like you are being charged an unreasonable amount even in mild weather conditions, it is time to consider the age of your home. For many families with older homes, that also means older wiring. Old or bad electrical wiring can cause an excess strain to provide electricity throughout your home.
Ask your utility company if your rates are standard for your area. They will be able to tell you if they are seeing an excess or a potential issue. If you find that your home is using an excess that is unusual for the home size and area, a call to an electrician may be in order. A simple check of your wiring, breaker box, and even testing of outlets can answer questions. Replacing wiring may be an expense up front, but the long term safety and savings are worth the effort.
Hidden fees are often found within rate charges
One of the biggest frustrations when comparing electricity rates on your bill is that you will see a lot of various fees. Sometimes those fees are very clearly listed. Other times they are cleverly hidden within rate changes. When you notice an increase in charges or a rate change per usage amount inquire about potential charges.
As needs change, utility companies often add on fees to cover things like upgrades. They pass those fees on to you, the consumer That doesn’t mean that you should be in the dark about the charges. A phone call with a few questions can clear up any questions you have. This can also help you understand the changes happening in your area.
Companies are competitive with rates and offer new customer deals
One thing that is always at the forefront of my budget mind is to compare rates with any new or local competition. This is something I do with grocery store purchases, new appliances, and yes, utility companies. Calling the competition is a great way to find out if you are getting the best rate.
Ask questions about the rate per kilowatt used. You will also want to ask about taxes charged or monthly flat fees they charge. Included in my list of questions is also the inquiry about deposits or setup charges. They sneak those in sometimes and over time, it may not be cost effective to switch.
Saving money on household utilities
As you can see, Living Rich with Coupons is not just about using coupons, but about being frugally minded. Saving money on household utilities is just a smart way to increase your budget without sacrificing needs. You can easily begin comparing electricity rates to determine if changes can be made to lower your bill. The results will be more money in your pocket!
More Budgeting Tips:
- 3 Outstanding Budget Tools
- Creative Ways to Save to Buy a Home
- How to Get Started Setting Up a Budget