Electricity bills are basically a measure of how much electricity is used
If the aim is to lower or even eliminate your electricity bill, the very first step to take is knowing how to read your electricity bill. Electricity bills are basically a measure of how much electricity is used and what it costs to produce that electricity. Unfortunately there are more than 3,000 independent electricity suppliers and co-operatives in North America, so there are also plenty of different ways to charge for electricity. With this said there are three major areas that you can focus on if you want to learn how to lower or even eliminate your electricity bill and you will find that each one offers something different to those who do not know how to read their bill. The three areas are: Individual Energy Rates (IER), Multi Frequency Selective Scheduling (MFS) and Electricity Demand Containment (EDC).
Individual Energy Rates is measured by how much electricity is produced from energy sources in an area and billed per unit. The types of energy sources vary slightly across the country and they are generally classified in one of four ways: electrical energy, natural gas, petroleum-based fuel, or coal. This is the main area of difference when it comes to determining your electricity rates. Different areas have different IER and MFS rates meaning you will pay different amounts for your natural gas and petroleum based fuels, whereas coal and other renewable sources are determined on the amount of pollutants in the air.
Your Personal Use Factor is a bit of a tricky one to judge
Your Multi Frequency Selective Scheduling (MSCS) is another way to determine your electricity bill and it is measured based on how much power is sent to your home on an annual basis. This is the type of rate that will usually be the lowest in your area. Your MFS rate is basically what will be charged to you for any renewable energy resources that you use at home, although some areas have been able to develop a renewable energy target through legislation. In the end when you look at all of this you may find that your multi-frequency schedule has the highest electricity charge. So, for that reason you should aim to have the lowest energy charge on your monthly bill.
For instance you can think about how much money you use every month and if you would like to save money then you may decide to change your electricity provider. Or you may not want to change, in which case you would need to work out how much you spend every month on your energy bill and set yourself a limit as to how much you would like to save every month. Then you can calculate the cost of switching between providers and work out whether or not switching would actually save you money. If it saves you money then by all means switch, but if it costs more to switch then maybe you shouldn’t.
The best way to reduce your electric bill is to shop around for energy suppliers
Finally there is the environmental impact issue. There is a movement afoot to get “green” electricity and natural gas bills lower and it is being debated passionately by politicians and the media. Personally I think it makes sense. If we save the planet then there is no way we can be blamed for any extra energy charges when we use power. Some people will argue that the amount of electricity used makes up a very small percentage of the natural gas or electricity charges made. But even if that were true it wouldn’t make much difference, because the other types of energy charges are all about the same, so if saving the environment was important then saving natural gas and electricity bills should also be important!
The best way to reduce your electric bill is to shop around for energy suppliers who offer the best deal. And make sure you check the prices before you sign up for any contract. You might find that you are paying more than the market price if you don’t look hard enough. And never sign any contracts with any company that wants to charge you a set rate to use their services – always negotiate on a more competitive rate.