After you’ve finally found the perfect home, the next important thing on your list will most probably be access to energy and other utilities. There are many utility providers and tank installation services out there, and this article guides you on how to find the best one for your needs.
Deregulation and The Power To Choose Your Provider
In the early days of natural gas and electricity usage, there was no regulation on energy usage. Because of the monopolistic nature of the energy market, energy suppliers had the freedom to charge whatever they wanted for their commodity.
Deregulation came to rescue energy consumers from that situation. The fundamental rule of deregulation is that customers have the right to buy their electricity from a Retail Electricity Provider (REP). That means you can shop around for the best electricity provider that fits your specific needs.
You can choose what type of plan you want. REPs offer a range of options, including variable-rate plans, fixed-rate plans, short-term options, as well as long-term options. They also strive to provide competitive electricity prices, promotions, and loyalty plans in a bid to attract average consumers.
Most of these providers get their energy from the same source and package it in different ways to suit the needs of different consumers. It’s noteworthy that deregulation laws vary between different U.S. states, and not all states are deregulated.
Likewise, some regions and cities within deregulated states don’t have deregulation. In Texas, for example, 15% of the cities are still under regulation, including large cities like Austin.
Keep in mind that in deregulated markets, utility firms continue to own the delivery structure. Still, the energy consumers have the freedom to choose which energy supplier generates or purchases the energy delivered to them. As such, they can select the provider with electricity rates that best suits their needs and budget.
How Much Electricity Does My Home Use
Have you ever paused to think about how much electricity you use in your home? In addition to lighting, cooling, and heating, every appliance or electronic device you use in your home accounts for your total monthly energy bill.
While lighting and climate control are somewhat challenging to manage, it’s easy to find how these devices and appliances influence your average kilowatt usage per month. Then, you can adjust your energy usage by unplugging or just using those devices less.
The first step in determining your energy usage is to determine the number of watts each appliance consumes per day. Multiply the wattage of the appliance by the number of hours it runs every day. The result will be the number of watt-hours used per day.
For example, a 300-watt fridge used five hours per day
300 watts x 5 hours = 1500 Wh/Day
Keep in mind that the electricity bill comes in kilowatt-hours (kWh). Hence, you have to change watt-hours to kilowatts.
1 kilowatt = 1000 watts
Hence A fridge using 1500 Wh per day,
1500/1000 = 1.5 kWh
You need to multiply this figure by 30 to get your average kilowatt usage per month. Thus, a 300-watt fridge running five hours a day consumes 45 kWh of energy per month. You can do this for all your appliances to determine how much electricity your home uses in a month.
Should I Get A Fixed Or A Variable Rate
If you live in a deregulated electric market, you’ll be able to shop around for the cheapest energy suppliers. In the process, you may come across two major types of plans – fixed-rate plans and variable rate plans.
A fixed-rate plan locks you into one rate throughout your contract period. The utility will charge you the same price per kilowatt-hour of electricity every month until the contract expires, whether the electricity prices fall or rise.
You won’t have to pay for the increase in electricity prices. However, if electric rates fall, you will be stuck with your contract’s higher rate. The best thing about fixed-rate plans is that you can easily budget your monthly expenses.
A variable-rate plan, on the other hand, allows your electric rate to change each month based on the market fluctuations. Since the electricity market is quite volatile, choosing a variable rate plan means there’s a higher chance of paying a different price per kilowatt-hour every month.
In an energy market where rates are going down, signing up for a variable rate plan may end up saving you a significant amount of money. You’ll take advantage of falling prices instead of being stuck in an exorbitantly priced contract.