Energy Charges are what your Electricity Provider charges you for the power that you use. This is what most people look at when they get their bill.Â
While this is important, often the breakdown isn’t focused on which can have the biggest impact on how much you end up paying. Peak and off peak charges vary from provider to provider and can heavily impact how much you end up paying for your energy,Â
In the world of home renewable energy, what feed in tariff you are getting can have the biggest impact on your final bill. This can swing wildly between providers and when you are returning power back to the grid, shopping around can really pay off.Â
Most feed in tariffs (at of 24th August 2020) are around 7 – 20c per kW feed back into the grid. It doesn’t sound like much but when you system is generating lots of power, it can really help.Â
There are are 4 key variables that have the biggest impact on your bill at the end of the month. Often two of them are seen by people as one, peak and off peak power. These should be focused on as being very separate. Then you must consider your feed in tariff and home supply charges.Â
Energy retailers change their pricing constantly.
There are so many factors that impact a retailers cost of power they do what is known as ‘hedging’ to help provide consistent pricing to customers. However, like anything, it is never perfect.Â
Due to this, it means your pricing can change any time. So staying on top of your bill and understanding the costs associated are very important.Â
Plus, electricity companies love a special!
When you first sign up for a retailer, they might be providing a fantastic promotional tariff however, after a few bills you notice things are changing. That is known as a teaser deal. They use a cheap special to get you in and then slowly increase the pricing.Â
Loyalty is rarely (if ever) rewarded in energy. When you factor that in with the ever changing pricing environment, aggressive pricing structures, changing retailer generally only creates opportunity and rarely has a negative pricing impact.Â
