How to Find the Cheapest Electricity Company

With utility prices on the rise it’s no wonder that many people want to shop for the cheapest electricity company available. There are some important things to consider before you start shopping. You’ll want to look at

Steps

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    Compare the rates. Electricity prices are charged per kilowatt. You can find out how much you’re currently paying, as well as how many hours of electricity you use each month, by looking at your bill.
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    Check to see if there are any Additional Charges. You’ll also want to see if there are any additional charges or fees or surcharge on your bill. These can add up and if you are not aware of them it can make a big difference on your monthly bill.
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    Distinguish the monthly prices. This gives you a better idea of what your total monthly bill will be because all charges will be included.
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    Research. However, not all companies offer bundles and not all bundles are alike. To do a fair comparison, look at the EFL, Electricity Fact Label, for each provider. The label is a way to more easily check rates and services offered by each electric company.
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    Choose a pricing package. When looking for the cheapest electricity company keep in mind that there are two main kinds of pricing packages.
    • Fixed Rate Plan. A fixed pricing package gives you a specific price per kilowatt hour, which will be charged for the duration of your contract.
    • Variable Rate Plan. A variable pricing package has prices that could change during the contract. The price could go either up or down, so you’re taking a risk by choosing this type of package. Sometimes, however, the initial pricing is low enough to outweigh the potential risk.
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    Find more information. Check the provider’s website to learn more about their services. It’s a good idea to read reviews from customers to find out what problems they may be experiencing. Low prices are great, but if you can’t get in touch with the company when you have an outage, or if you’re on hold for hours to speak to customer service, price won’t matter.
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    Find the type of contract that they offer. You may be able to get lower prices if you are willing to sign a long-term contract. Some contracts typically run between 3 months and 2 years.
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    Investigate. Quality of service. Keep in mind that the provider may charge termination fees if you decide to change providers before the end of the contract. Another consideration when choosing the cheapest electricity company is the actual quality of service they provide.

Article Info

Categories: Buying Wisely