The energy rate or electricity rate refers to the price users have to pay for consuming electricity per kilowatt-hour. Many people think that the definition of energy rate and tariffs are the same. But actually, this is not true. Tariffs are the combination of electric rates along with other charges. These tariffs are applied for calculating the final utility of customers. For instance, tariffs refer to calendar dates like holidays, consumption tiers, and service charges.
Types of tariffs
It charges per unit depending on consumption and may enhance tiers depending on how much users consume. Now we will talk about how residential tariffs are structured.
Time of use tariffs
These tariffs charge every unit depending on the time of day, calendar dates, time of the season, or year. Time of day is mainly classified in two ways.
Everyone is utilizing electricity mostly. For this reason, the price rate of electricity is higher at this time.
At this time, only a few people use the energy. So the charge rate is lower compared to earlier.
This tariff is applied to users with interruptible loads. These take into account customers who can decrease their consumption at the time of emergencies or high-demand periods.
Energy rate plan
We can categorically divide energy rate plans in two ways. These are fixed energy rate plans and variable energy rate plans.
Fixed energy rate plan
Those users want peace, they must go for this plan. In this plan, your price rate will be charged based on your set price and set contract. For this reason, the market price does not affect your plan at all. If you want to go for a long-term solution, you must choose this plan. The contract period set in this plan differs from three months to three years also. Those users like to choose a short-term plan, they must set the contract only for one month.
Variable energy rate
Those people who are risk lovers may find this plan very feasible. Here you do not need to set any contract. This is a more flexible plan compared to before. The price charged in this plan changes from month to month. Here you do not need to pay any cancellation fees if you change your plan like before.
Why customers should choose a power to choose for electricity shopping?
Everyone wants to reduce their electricity bills. But in many cases, they do not know which electricity service provider is best for them. For this Power to Choose , the state-run electricity shop website brings together all electricity service providers in one place with their offer plans and energy price rate.
So users can easily find out the best service provider after comparing many quickly at the best possible prices. If you like to power your house with a renewable energy source, power to choose is there to help you to choose the best and possible green energy plans.