Cheap Electricity
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How often do you see an advertisement for cheap electricity to discover that the electricity companies are not really selling cheap electricity at all? In fact they are marketing overpriced electricity that will cause you to pay a very high electric bill. This has got to stop now! So how do you avoid these overprices electric companies and find a cheap electricity company.
There are three items that you need to be aware of minimum usage, delivery charges and taxes. Many power companies will quote their price per kWh (kilo watt hour). These are the companies actual prices the difference is that the price quoted doesn’t include the other miscellaneous expenses that can possibly increase the overall electric bill by ten to fifteen percent.
So the minimum usage charge is something that usually isn’t discussed but it is a fee that is generated by the retail energy provider to cover their fixed costs. The fee works like this. As long as the customer uses a minimum of one thousand five hundred kWh’s of electricity the price is ten cents a kWh. If the usage for a month’s service falls below the required one thousand five hundred hours then their will be an additional charge of ten dollars and fifty cents placed on the monthly bill. By using this method the electricity provider can cover their fixed expenses.
Cheap Electricity Delivery Charges
So what are delivery charges? With the recent deregulation of cheap electricity the companies there are three entities involved in your electricity service. One of these is the delivery side of the business. The delivery company provides the power lines, meters, transformers and repair services plus other important items. In order to cover their expenses a charge is placed on your bill to cover their expenses. Some of these charges could include a meter charge, rate case surcharge, energy efficiency charge or a move in connection charge. Some of these charges are not appreciated but they are important if you want to have quality electricity companies service to your home or business.
The other major tacked on expense is the state tax. Obviously this amount changes based upon the state one lives in. Some states only apply a sales tax based upon the percentage of the overall bill. Others may charge additional fees that help fund electricity for the less privileged or to fund green energy projects. All these fees are created by your states legislature and the electricity companies are required to charge these expenses.
Cheap Electricity Additional Charges
Additional charges have recently been creeping into customer’s bills. The one that we think is most offensive is the customer support fee. That is right; some companies are now charging their customers a fee up to five dollars if they place a phone call for customer support. More fees obviously could be late charges or reconnection fees if the customer falls behind on their electricity bills. The way to find out about your cheap electricity companies additional fees and charges is to read the energy facts label that is required to be provided by each electric company.
We hope that this information on cheap electricity has been helpful. You may also find our articles on electric companies and electricity companies helpful. We love cheap electricity!
