Electricity suppliers are the companies that supply power to our homes and we would normally get this from our utility company. But in some areas you can get the power from a number of different suppliers and so one has to check out all the deals available in the market before deciding on the right tariff for the house. You will normally find that the kwh (kilowatt hours) that your electricity gets is regulated and the rates differ from time to time. The regulation starts from when the house is first built and the rates increase steadily each and every year.
Some people have the impression that the more they use electricity from their suppliers, the higher their bill will be. However this is not true, as you may notice that after increasing your usage, you may start receiving your bill at a lower price. In most cases, the increasing cost may be due to a rise in the wholesale price of natural gas and also of oil. Both these commodities are bought by many companies and so it makes competition among suppliers very stiff and a price war may break out. The good news is that most electricity suppliers now have plans to phase out the high price mark-ups they indulge in from time to time. So the best way to keep your bill down is by switching electricity suppliers and reducing your usage.
If you are living in an area where you receive deregulated or ‘special rate’ electricity, the supplier you have chosen may not charge a regular rate for most of the time. This means that even if you have used up most of the available tariffs, you will still be paying less than what you would have had you been using standard tariffs. However, deregulated prices are prone to price increases at any time, which will make it almost impossible to pay off your bills on time. This is why it is better not to choose deregulated suppliers unless you want to end up with monthly bills that are higher than you can afford.
Some suppliers will also have some sort of exit fee attached to their deals. Remember, the exit fee is what keeps deregulated electricity prices high. Most suppliers charge an exit fee when you decide to switch to another supplier and will raise the prices of those services you use once you do. While this does little to help you reduce your electricity bills, there is nothing you can do about deregulated prices and their exit fee.
Electricity suppliers have also started offering ‘bunds’ for certain types of products. You can usually find a ‘bund’ by visiting your utility provider’s website. A bund is a discount on a particular service from the electric supplier; you can usually find the type of service you are interested in online and request a quote. While this is a great idea for most customers, if you are looking for competitive rates on household utility services you should avoid signing up for a band.
If you don’t mind having to switch electricity suppliers every few months to keep your bills down, there are other options available to you. You can start by shopping around online for different tariffs from different providers. Then, when you need to change your tariff you can simply switch back to the supplier who offered you the better deal. You can even compare electricity prices online with this method before making a decision on who to switch to.