It’s possible you may have already experienced that dreadful moment when you open your electricity to see an outrageous amount.
With a high cost of electricity, the next question should be whether you’re paying too much for electricity. The best way to answer this question is by comparing your bill with the national average and everyone else in your neighbourhood.
Grab your reading glasses and the most recent bill, and let’s figure out whether the price you pay is fair or you’re overpaying.
To understand what you’re paying for, the first step is interpreting your power bill statement and energy rates.
Most energy or power bills have two sections: the usage rates and the daily supply charges. Both charges can be variable or fixed.
If your current energy plan has a fixed rate, your daily supply charges and usage rates remain constant during the benefit period, often twelve months.
If your plan has a variable rate, the energy provider can adjust the daily supply charges and usage rates any time they want. The only condition is to issue you a written notice of the same.
- How to Calculate Your Bill Using the Daily Supply Charge
The daily supply charge is the amount you pay the energy provider to supply you with electricity.
It’s a standard or fixed amount and is not affected by the electricity you consume. Daily supply charges are often between 80c/day and 120c/day.
To calculate your bill, you’ll multiply the number of days you had electricity by the daily charges.
- How to Calculate Your Bill Using the Usage Rate
The usage rate is the amount you pay for the actual amount of electricity (c/kWh) you consume. These rates vary depending on your monthly usage, so the monthly bill varies.
To calculate your bill, you’ll multiply the number of units of energy you used (kWh) by the daily charges.
Tips for Reducing Your Bills
Now that you know how your power consumption compares to other households, it’s time to identify ways to minimize consumption and save on your energy bills.
You can start small, as even slight changes can make a big difference in the long run. Some changes, such as buying energy-efficient appliances or renovations, may seem expensive up front, but the energy savings will be worth it.
- Ensure You Have Proper Insulation
It’s essential to ensure your home has adequate insulation. Proper insulation helps keep cool air outside the house during winter and inside the house during summer. If your insulation system needs repairs or improvements, it’s best to work with a professional rather than DIY.
You can add insulated curtains and draft stoppers at the window and door edges.
- Be Mindful of Your Washing Habits
You can save significantly by adopting better washing habits. For instance, you can try doing your laundry using a 30-degree cycle on the washing machine instead of higher temperature settings.
You should also reduce doing laundry to once or twice a week to save on energy consumption.
- Instead of Taking a Bath, Take a Shower
Most of us enjoy a long, peaceful soak after a hectic day but making it a habit raises your energy bills.
Once in a while is acceptable; you can start by reducing the frequency to once a week. You’ll soon realise how much you save on your next bill.
You can make many different changes to minimize your power bills and energy consumption. Some can be drastic such as total-home improvements, while some are daily habits. Regardless of the magnitude, there are practical changes you can adopt in your home.
Your goal is to remain below average regarding electricity bills. Find the most suitable energy plan by comparing energy providers on the Australian Government’s website; Energy Made Easy.