Being energy smart is a necessity since the price of electricity bills have increased. It is now important to know what may have caused the increase in electric bills and exactly what to do to be energy smart.
The cold weather in late February and early March of 2018 brought an increased need for heating, which resulted in a substantial amount of increased electrical energy consumption. The European commission’s market report shows that this increased demand resulted in an increase of household electrical bills by 25%.
This number is high enough for most people to feel the inconvenience even though some groups of people will feel it more than others, like the elderly and the disabled because they are reliant on heating to avoid health risks and may be hindered by the increased cost.
Factors that caused the increased cost of electricity
High demand on electricity for heating was not the only factor that caused an increase in electrical cost, reports outlined three factors that caused the hike in prices.
Lower supply of electricity: The supply of electricity reduced drastically following the closing of cheaper power plants. The closing of these cheaper alternative like coal based was not without reason though, it was as a result of high maintenance cost and environmental sustainability concerns. This reason accounted for 60% of the higher electricity cost.
Increased production material cost: following the closing of cheaper power plants, the ones left open still had to increase electricity costs because the price of materials they used for production also increased significantly. Materials like gas and black coal became more expensive as plants closed up causing an overall increase in cost of production and inherently electrical bills by about 40% of its increase.
Generators that game the system: Generators can affect the supply of electricity and the price of electricity through a process called “gaming” which involves an artificial induced shortage of supply. Since there is already a higher reliance on these generators for electricity supply, gaming is felt more intensely than it was prior, hence an increase in price of electrical bills.
Steps to take to be energy smart
Understanding the factors that cause the hike in prices, the next thing to do is to know what you can do to reduce how much impact the increase in electrical bills is felt. The following strategies will help you to become energy smart:
Adopt energy efficiency strategies: One obvious way to reduce how much you get billed for electricity is to reduce how much energy you consume. One way is to adopt an energy efficiency lifestyle and another is to use devices that are pro energy efficient.
Choose a cheaper retailer: You may just be using a higher priced retailer, compare prices online and you may just find a cheaper alternative.
Pick renewable energy: Renewable energy is more economically and environmentally sustainable and is a good way to save especially in the long run, options like solar and batteries can help.
At the end of the day, it is a wake up call to be conscious and deliberate about energy consumption so as to reduce it. You have to be aware of how much your appliances are consuming and you can do this with an energy management system.