Is it necessary, the electricity plan that suits your friend is also suitable for you? Not really! While selecting the plan, some go for an affordable price, some with fixed-term contract and others might have some different priorities. Set your preferences and then search for a plan that fits your usage or requirements.
Various factors need to be considered while selecting the best plan.
Before you begin your search or you finalize on a specific plan, it would be better if you consider your electricity consumption or usage first. The cost of energy varies as per usage, so understanding your usage is vital to determine the best price and plan for your home or office.
You can make a rough idea by analyzing your past few months electricity bills. Take an average and select the plans accordingly.
Also, think whether you want to go for no deposit plans or the ones with a particular deposit. If you consider electric company’s with no deposit plans you don’t have to deposit any certain amount and pay only as per your bill. It is also the best idea of saving money.
Most of the electricity providers offer rewards, where you get free electricity, this offers attractive savings. Every time you pay the bill, you get a credit score depending upon your on-time payment and certain other set criteria. When you get your rewarded points redeemed from your bills, you end up paying less than the bill. This is also an excellent method of cutting down your expenses.
If rewards are essential to you, then you need to look for plans with this feature. Consider all the available options and select the best that suits you.
Fixed Rate Plan or Variable Rate Plan
If you want to enjoy a fixed rate for your contract term, let’s say for six months, twelve of twenty-four months than fixed rate electricity plan can be your choice. As your electricity bills remain stable for the contract term, it won’t affect your bills if you consume less or more energy.
But if you want to pay as per your usage, then you can go with the variable rate plan. The rate of the energy also fluctuates as per market price, which is not the case if you select the fixed price plans. The cost of electricity depends on many factors like demand, weather, fuel price, market, etc. During high-demand season, the rates may get higher.
In fixed rate plans, if you end the contract early, you will be charged some amount. Again, as per your requirements, select the one that you like.
Single Rate or Time of Use Tariffs
Another factor that you can consider while selecting the plan is whether you want to pay as per “time of use” or go with a “single rate.” If you opt for “single rate” you won’t get the facility of off-peak periods. You will be charged at the same price for your usage.
But in “time of use” tariffs, different rates are set, for different times of the day. The complete day is divided into peak and off-peak periods. Usually, the peak period is Monday to Friday evening when the cost of electricity is the highest. Off-peak is Saturday and Sunday overnight. Rates are cheaper at this time. In between peak and off-peak periods you are charged at a “Shoulder rate,” which is comparatively less than the peak period.
Some people even prefer green rating plans to do their bit for the environment. So, select the plan depending on your priorities and lifestyle by considering all the factors that are discussed above.
Hope you select the best plan for yourself.