6 Things To Keep An Eye Out For When Choosing An Energy Plan
Shopping for energy plans is becoming easier by the day. However, to make the best decision for powering your home, you must understand some basic facts about utility companies and the different options they offer.
These are all important facts that you as a consumer should know, so you can avoid making a mistake that can have costly consequences. Since delving into these facts can be confusing at times, to make it easier, this article has brought you six things to keep an eye out for when choosing your new power plan.
- The Type of Energy You Need
The first thing you need to do when looking for a new power plan is figuring out what kind of source you need, based on the type of appliances you use. For example, electric heaters, stoves, and boilers consume power at a very different rate than the ones using natural gas do.
If you have both, you might have to consider switching to only one option to reduce your costs. You should also keep in mind that many providers offer renewable sources as well, which are often a lot more cost-effective than the traditional ones.
2. Your Energy Patterns
Take a look at your energy bills from recent months and find out when you use the most power. This often fluctuates depending on the particular times of day and seasons as well. You can use this information to change your power consumption habits and change to a plan with more favorable rates.
If your utilities also vary from month to month, a fixed-rate plan is the best option to ensure knowing ahead of time what you will pay for each unit you have used.
- Competitive Pricing
Find suppliers in your area and ask for their plans and rates, then review these to determine which will be the best fit. Many suppliers will offer you a seemingly promising option and can even urge you to rush into making a decision. This happens due to the competitive nature of this market and the increasing costs of non-renewable energy sources.
The team at electricitymonster.com.au is very well aware of how the rising Australian electricity prices make it difficult to choose a sound energy plan. To make this process easier, they recommend taking your time to shop around until you find the most convenient rates.
4. Types of Available Plans
There are two main types of power plans: fixed-rate and variable rate plans. Fixed-rate options usually offer the most benefits you can get from any policy. These will allow you to choose the pricing that fits your budget and lock in that rate for the length of your contract term, so there are no more sudden rate increases.
Variable terms include rates that fluctuate based on things like weather and changes in the energy market. These represent an excellent money-saving tool when prices are low but you have to be prepared for the additional costs when the price increases.
- Payment Options
Most people choose to pay their energy bills after consumption, which is considered a postpaid payment option. Your bill arrives at the end of each month once the power company calculated your total price based on your usage. Most of the plans are designed like this by default unless their terms state otherwise.
With prepaid plans, you have the option to pay for a certain amount of electricity before you use it. These could be a good fit for a tight budget – however, once you reach the amount you’ve paid for, you might find yourself without power until you add more money to your account.
6. Additional Plan Costs
Your energy bill is made up of several costs, like delivery, energy units, capacity, transmission, and so on. Some of these you might be able to control, but not all of them. In addition, some of these energy costs may vary from your area of residence. Before opting for any of them, make sure you check each power supplier’s additional expenses and that you fully understand what your monthly bills will consist of.
Finding the right power plant for your home or business is definitely not a simple process. Picking the lowest initial rate you see can be tempting. However, as these rates tend to increase under certain conditions, this rushing into a good deal often ends up being a huge mistake.
For this reason, it’s always recommended to do a little bit of research by looking at the main components of energy plans before opting for your final choice. That way, you can make an informed decision and save yourself from a lot of stress, knowing that your money is being spent the way you want it to be.
Things To Keep An Eye Out For When Choosing An Energy Plan