Every single energy supplier in the UK is regulated by Ofgem, the industry regulator. This means that the smaller, lesser-known companies have to follow exactly the same rules as the bigger, more established ones. If a company goes bust, you’ll be covered by Ofgem – they’ll ensure your supply isn’t cut off, and they’ll appoint a new supplier to take over your tariff.
1. Contracts: Before, there were no contracts. You signed up or you didn’t. When it’s the only game in town, you have to play by their rules. Nowadays, you’ll see these ultra-fabulous rates bandied about but it’s only by carefully scrutinizing the fine print that you’ll discover those wonderful rates come with a one-year lock-down or other catches.
Then, in 2002, Texas deregulated the electricity market and everybody cheered! Except that, sure, deregulation opened up the market to competition that may (or may not) have resulted in lower rates, but it introduced a whole host of other issues. These issues may not have been factors before but now they’re critical when you’re on the look-out for cheap Houston electricity providers.
Electricity pricing (sometimes referred to as electricity tariff or the price of electricity) varies widely from country to country and may vary significantly from locality to locality within a particular country. Many factors go into determining an electricity tariff, such as the price of power generation, government subsidies, local weather patterns, transmission and distribution infrastructure, and industry regulation. “Electricity prices generally reflect the cost to build, finance, maintain, and operate power plants and the electricity grid.” Some utilities are for-profit, and their prices will also include a financial return for shareholders and owners. Electricity tariffs vary by type of customer, typically by residential, commercial, and industrial connections. Electricity price forecasting is the method by which a generator, utility company, or large industrial consumer can predict the wholesale prices of electricity with reasonable accuracy. The cost to supply electricity varies minute by minute.
Excessive Total Harmonic Distortions (THD) and not unity Power Factor (PF) is costly at every level of the electricity market. Cost of PF and THD impact is difficult to estimate, but both can potentially cause heat, vibrations, malfunctioning and even meltdowns. Power factor is the ratio of real to apparent power in a power system. Drawing more current results in a lower power factor. Larger currents require costlier infrastructure to minimize power loss, so consumers with low power factors get charged a higher electricity rate by their utility. True power factor is made of displacement power factor and THD. Power quality is typically monitored at the transmission level. A spectrum of compensation devices mitigate bad outcomes, but improvements can be achieved only with real-time correction devices (old style switching type, modern low-speed DSP driven and near real-time). Most modern devices reduce problems, while maintaining return on investment and significant reduction of ground currents. Power quality problems can cause erroneous responses from many kinds of analog and digital equipment, where the response could be unpredictable.
Not only does Amigo Energy feature useful resources on our blog, but we have the right technology to help you track your residential electricity usage and take actions that may help with energy savings. We offer the latest technology (phone apps, smart thermostats, and even smart sprinklers) so you can worry less about your electric bill and focus on what really matters in life.
Unlike with long-term plans, monthly, variable rate (no-contract) plans have no cancellation fees. You won’t have to pay a penalty if you decide to take your business elsewhere because you found a better deal. Plus, you won’t be left paying more than you should if the market rate for energy trends down. However, if the market prices rise, you’ll have to pay more than those who are in-contract.