Can You Read Your Power Bill?

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Can You Read Your Power Bill?

When temperatures started to plummet, what do you reach for first?

Most likely, it’s a blanket or extra sweater. If so, you’re not alone!

Instead of cranking the heat during New Zealand’s winter months, almost half of Kiwis add extra clothing layers for warmth. With our power bills already being so high, most Kiwis try to keep thermostat changes as the last resort. But what if there were other ways to keep your power bill costs low?

Understanding Your Power Bill is the Key to Saving Money

Recent research from Canstar Blue also found that three in ten Kiwis do not understand their power bills.

That means that 30% of Kiwis may be paying more money than necessary for their household’s energy costs. How do you know if you’re getting a good deal or not if you don’t understand what you’re paying for in the first place? The short answer: you don’t.

A Breakdown of Your Power Bill

Besides reflecting your household’s power usage, your power bill includes when you use your power, too. The rates included on the bill include costs from power generation to delivery to your door.

The first part of your bill, the daily fixed charge, is the amount that covers the generation and transportation costs of power to your home.

There will also be variable charges or costs that change depending on your usage. These are made up of Kilowatt per hour (or kWh). Taxes will also be included on the total amount of your power bill.

Ways to Save on Power Costs

After understanding what you’re currently paying for, it’s time to see if there are ways to save on your household’s energy costs!

Spot Price Contracts

For disciplined Kiwis that use off-peak times for the majority of their energy usage, spot price contracts may be the way to go.

This type of billing arrangement has you pay less than the retail market rate for your power. However, if you’re on a spot price contract and you use your appliances during peak time, you could end up paying much more.

Low-User Tariffs or Controlled Plans

For smaller households, there are cost-savings plans that involve a meter supplying electricity to appliances for a specific time each day. A great way to save on washing machine, hot water cylinder and heat pump operating costs!

Payment Arrangement Discounts

Many energy providers offer discounts to efficient customers. Inquire about whether you are eligible for a prompt payment, direct debit, dual fuel or email correspondence discount.

Other Ways to Save on Energy

With over 40 energy companies competing for your business, it pays to spend some time researching whether you can get a cheaper rate elsewhere!

Easily utilize Switchme’s free, online comparison calculator to immediately see if you’re getting the best rate on your energy costs. Contact us today for more information.