Electricity and gas are two of the essential utilities in our everyday lives, but how much do you know about them? Plenty of people live their entire lives without learning anything else about either energy source, just plugging in when the lights go out and flipping a switch when they want to heat the oven or shower.
But if you read to understand these vital energy sources, there’s no time like the present. If you’re curious about why you should compare electricity and gas, here are ten facts that might surprise you about each.
Energy is important
We all know how vital energy is, but many take it for granted. When you get your gas or electricity bill in, you might not overthink what powers your home. But a typical family’s energy use is equal to that of five cars, so it’s worth thinking about where your energy comes from and how you can use less of it.
Shopping around can help you save on your bill
Shopping around for a better rate isn’t just good advice if you have your eye on a new car. It’s also worth doing if you’re looking to pay less for your monthly utility bill. If you’ve been with one provider for years, it might be time to comparison-shop.
Some states have programs that make it easy for residents to see what their neighbors are paying for electricity or natural gas, making it easier to compare rates before switching providers. Although many plans charge an exit fee of up to $50, those fees usually won’t add up over time.
Learn the lingo
The rate at which energy is supplied to a circuit. Volts: A measure of power calculated by dividing current in amperes by resistance in ohms. W: A unit used to measure power. The basic formula for calculating watts is multiplied by amps (volts x amps = watts). Wattage: Similar to voltage and current, wattage measures how much power a device requires; you can use it as a shorthand for determining the size inverter.
For example, if your array produces 13.5 volts (V) at five amps (A). In that case, your maximum wattage output is 65 watts, but only when battery charging or powering lights or appliances that draw less than 5 Amps continuously.
Bigger households need more energy than smaller households
Living alone may only need a small amount of energy to keep your home comfortable. But if you share your space with others, mainly if multiple adults or children are in your home, you will likely require more electricity than a single device can provide. An energy advisor can help determine how much power is suitable for your needs based on your home size and appliance choices.
Changing your supplier can save a lot of money
It’s been estimated that customers who switch energy suppliers can save between £250 and £400 annually. However, it should also be noted that there are costs involved in changing suppliers, such as paying for a new meter.
If you can’t stand being tied to a particular company long-term, it might be worth sticking to your current deal until any contract expires. Use our comparison service to see if you could potentially cut costs by switching suppliers or entering into a fixed-rate tariff. You could save hundreds of pounds each year just by doing so.
Switching providers isn’t tricky
There are fees involved with switching providers, but these fees can vary from nothing to around $100. Generally, electric and gas companies will let you switch for free if you’ve been a customer for at least one year. It’s worth checking out your utility company’s website to see what it charges for changing companies before you make a move though some companies charge an exit fee if you want to end your contract early.
Remember that even if there isn’t a fee for leaving your provider, it could still take several months of paperwork before you’re officially energy-independent. It’s important to note that some electric and gas providers have minimum contract lengths; be sure that any move won’t leave you stuck paying for a plan or service longer than you need.
There are suppliers, especially for businesses
Businesses have lots of different energy needs. And they may need to use a few different suppliers for those needs, depending on how their business is structured. Some suppliers specifically cater to businesses by offering unique pricing options, better access to support, or specialized products.
You must find a suitable business energy supplier so your business can get everything it needs at a price it can afford. In most cases, you will want to go with an electricity supplier with its generation facilities.
The energy companies want to help people save money on their bills
If you’ve been on a standard tariff, you may have to pay an exit penalty if you switch before your contract ends. These exit penalties mean that it can be expensive to leave your energy supplier if you’ve been with them for several years. It’s worth comparing these penalties before agreeing to a long-term deal.
If a provider has increased its prices during your contract, consider whether it’s still cheaper than switching now. The cheapest option could save you money in tariffs too!
Consumers with long contracts may be penalized for switching before the end of the contract
Two things drive electricity prices: market rates set by energy companies and the terms of your contract. Energy companies generally offer cheap plans on short-term contracts, while long-term contracts come with higher rates, but if you’re willing to commit, they can save you money in the future.
With short-term and long-term deals, consumers need to check whether there are exit penalties for terminating their contract before it expires. The worst penalty is when a company levies an early termination fee for ending a contract early, so it pays to read those small print statements!
Comparison sites can help by comparing tariffs from various suppliers
There are numerous websites out there that provide valuable, free comparisons of electricity tariffs in your area. Take advantage of these services before you sign on with an energy company.
Comparison sites will allow you to see what kind of deals are available in your neighborhood and can also help you avoid any nasty surprises from suppliers who might offer great rates at first but raise them later. Also, it can be a great way to ensure you’re getting a good deal on your utilities every month.
Conclusion
Once you’re done with your research, take some time to step back and consider which energy method could save you more money. For example, if it turns out that upgrading appliances will help you save significant amounts on your electricity bill, then it makes sense to do that instead of switching suppliers. Ultimately, there is no right or wrong answer in terms of methods for saving money; only what works best for your situation. However, to do something about rising energy costs, finding a cost-effective solution is critical before they can wreak havoc on your wallet.
