Electricity and gas bills are what homeowners fear looking at when they arrive every month. These documents list the amount you need to pay as well as the breakdown of your energy consumption. When you don’t know how to peruse your bill properly, you will have a hard time determining what appliances or other home essentials are taking up most of your energy.
In this blog, let’s talk about how you can compare electricity and gas bills so you can reduce the amount you need to pay.
1. Choosing The Right Plan
Choosing the right plan is one of the important tasks you need to do because the best electricity or gas plan will be cost-efficient and won’t waste your money. Generally, residential energy customers are presented with fixed or variable rate options.
Fixed-Rate
Fixed-rate electricity or gas plans are ideal when you are following a budget for your utility bills. You can choose a corresponding energy rate price to fit your monthly energy budget with a fixed plan. The plan you choose also locks you in that rate for a specific contract term length.
When you choose a fixed-rate plan, you don’t have to worry about your bill increasing every month because the price is already locked and the same.
Variable Rate
On the other hand, several energy suppliers and utility companies offer variable rate plans wherein energy rates vary and fluctuate depending on demand, weather, and energy changes in the market.
2. Knowing Your Energy Pattern
When viewing your electricity or gas bill, you can compare the time of the day when your household consumes the most energy. There’s a high probability that energy consumption fluctuates depending on different seasons and whether it’s a weekday or a weekend.
Also, when you know your energy pattern, it allows you to learn how to conserve energy so that you’ll pay a lower amount for your utility bills. Changing your energy consumption habits can also help you become more efficient in budgeting your utility bills.
3. Determine Additional Energy Costs
Aside from deciding on the right energy plan, you also need to be aware of the several costs that make up an energy bill. While these costs may vary depending on which state you’re residing, the common additional energy costs are listed below:
1. Energy units: the amount of electricity in kWh that a homeowner consumes on his property.
2. Delivery: utility companies charge a certain amount, equivalent to the amount of energy moving through gas pipelines, power lines, and meters.
3. Transmission: how much does the energy transfer bulk from a power plant to an electrical substation cost.
4. Capacity: a fee that ensures electricity supply is always sufficient on the grid even during peak times.
5. Ancillary services: regulation, voltage control, and black start costs.
4. Looking At the Plan Duration
Knowing how long you desire to be locked in a specific term plan is also essential. This would normally depend on your energy budget and flexibility. Generally, you can choose from a 12, 24, or 36-month energy plan.
5. Reading Your Bill
Learning to read your bill is the best way to control how much you consume energy at home. It’s a skill every homeowner should develop because reading the bill can also help you check if all information and details are accurate, especially the total amount. Generally, an electrical or gas bill has three important sections: essential information, usage cost, and payment details.
Essential Information
You can normally find the essential information in the top section of your bill. These details usually include the following:
- Account name and reference number
- Tax invoice number
- Supply address
- Bill date and billing period
- Realtor’s and distributor’s phone number
The account details and the reference number are important if you need to discuss your energy plan and bill with the retailer. On the other hand, the supply details, billing period, and property address are essential to knowing your energy plan type.
Usage Costs
Usage costs are divided into two smaller sections: usage calculation and meter details. The meter details outline the following details:
- Supply address
- Meter number
- NMI or national metering identifier for electricity
- MIRN or meter identification reference number for gas
- Billing period
- Meter reading that includes the actual or estimated period covered)
On the other hand, usage calculation gives you statistics and a summary of how your energy bill is calculated. It commonly outlines the following:
- Daily supply charges – cents charged to the property connected to gas or electricity per day
- Usage charges – cents per kWh or MJ charged for the amount that consumes gas or electricity
Payment Details
The payment details section lists the total amount to be paid, highlighted in bold. It also includes the due date for paying and additional conditions. Payment options are generally listed at the bottom of the page.
Use Energy Wisely
Knowing and understanding electricity and gas bills are the best ways to save and reduce energy consumption. Choose the right plan you need for your utility, and learn to use energy wisely.
