You may be surprised that over time, your electricity bill reflects different prices. And as such, the number of units you get from time to time slightly varies. Sometimes, you may even start comparing electricity rates with your neighbours to see who got more units for the same price.
However, there are so many factors that go into setting electricity prices. And that’s why the number of units can be different for you or when you compare with your neighbour. In this article, I’ll be explaining a few of these factors and how they can affect your electricity bill in the long run.
4 Factors That Influence the Cost of Your Electricity
1. Property Type
There are three property types when it comes to electricity; Residential, Commercial, and Industrial.
These properties are classified based on the size of appliances they utilize. For example, industrial properties will have significant industrial machinery for manufacturing or production. Residential properties consume the least amount of electricity. So electricity pricing will be cheaper on a residential property when compared to a commercial or industrial one.
Before moving in, confirm what type of property you’re on by contacting your distribution company directly.
2. Tariff Band
Last year, the National Electricity Regulation Commission (NERC), classified electricity users into five bands; Band A, B, C, D, and E. This classification was based on the number of available electricity in 24 hours.
Band D and E were reported to enjoy less than 12 hours of electricity every day. And so, they did not experience the subsidy removal like other bands. This means that high-use residential properties (Band A, B, and C) will ordinarily pay more per kilowatt.
You can find out what band category you’re on with Buypower.
Simply visit your transaction history, click on “order details”, scroll to the bottom of the page and locate “Meter Category”. Your band type will be highlighted there.
Now, this might seem quite odd, right? I mean weather? But yes. Weather plays a vital role in your electricity bills. Rainy season can help make hydro-generation cheaper or easier. However, hot seasons will make you turn on every air conditioning and fan in sight. This means you consume more electricity without you even noticing. As a result of this, your electricity bill will be quite higher during this period.
Festive seasons are not excluded. With a high number of visitors at home and appliance usage, you may want to be prepared for a significant change in electricity pricing.
A solution, in this case, might be to slightly increase your electricity budget during these extreme weather or festive seasons.
4. Vampire Appliances
Okay maybe I'm being extreme. But modern appliances tend to consume a lot more electricity as compared to their previous counterparts. For example, modern gadgets never really power off. You’ll notice that when you turn them on, they come on faster. That’s because instead of completely shutting down, they take on a standby mode. Consider disconnecting your appliances directly from the power source.
Also, when using your washing machine or dishwasher, it’s often better to load them to the highest capacity. That way you save electricity by washing fewer times. You can learn more electricity-saving tips here.
And these are just a few things that affect your electricity pricing. Do share this post with your friends and family members who might find this useful. You can share by using any of the social media icons on this post.