To skirt the late summer electricity rate hikes, a little bit of planning can really pay off. Try to avoid signing new long-term electricity contracts in late summer. While it may be impossible to escape signing a new electricity contract if you’re moving during that time, just know that a short-term plan may make more sense until the rates go back down in the fall. That way you’re not stuck paying a premium rate for an entire year or more.
The problem is that across Africa, the vast majority of the power utilities are effectively bankrupt. Another World Bank study (pdf) on African Utilities shows that only two of the 39 African utilities surveyed, in the Seychelles and Uganda, were able to generate enough cash to cover both their operating costs and capital expenditures necessary to invest in the maintenance and expansion of the grid. In fact, only 19 of the 39 companies were able to generate enough cash to cover their day-to-day operating costs. It means the rest were not even able to pay everyday costs, like salaries, in full.
The UK has been a net importer of energy for over a decade, and as their generation capacity and reserves decrease the level of importing is reaching an all-time high. Their fuel price's dependence on international markets has a huge effect on the cost of electricity, especially if the exchange rate falls. Being energy dependent makes their electricity prices vulnerable to world events, as well.
During your search, it’s important to keep in mind that your timing may be the most important contributor to actually finding the lowest electricity rates. So when is the best time to find cheap electricity rates? With the market rates for electricity fluctuating on a daily basis, we know that pinpointing the best time to switch may seem difficult. Here at Think Energy, we want to provide you with information to determine the best time for you to score the lowest energy rates.
The local electric company is the utility – that’s the company who owns the infrastructure, including the poles and power lines that deliver electricity to your home. They are who you call if your power goes out or there's an emergency. But in almost every city in Texas, you must choose another company to supply that energy, called a Retail Electric Provider (REP). These REPs, like Spark Energy, allow you to choose electricity plans that offer competitive prices and plans to meet your needs.
For example, in 2012, Hawaii residents had the highest average residential electricity rate in the United States (37.34¢/kWh), while Louisiana residents had the lowest average residential electricity costs (8.37¢/kWh). Even in the contiguous United States the gap is significant, with New York residents having the highest average residential electricity rates in the lower 48 U.S. states (17.62¢/kWh).
2. Fraud: Too many people have been victimized by glib sales reps with promises of cheap electricity flowing in an unending stream only to discover that, as is so often true, “it ain’t necessarily so”. They’ve been locked into unwanted term contracts or there’s a catch – some utilities will give you the great rate only if you meet a usage minimum; basically, the “rate” is, in actuality, a “bulk purchase” discounted fee – or they paid a deposit never to hear from the rep again.
Are you a journalist or researcher writing about this topic who needs to know more about historical rates? Send us details about what you need and we'll get back to you with an answer and a relevant quote from one of our rate experts. You should also check out the Choose Energy Data Center for more statistics and analysis centering on energy in the U.S.
While there is a very strong argument for providing cheap, subsidized power for the poorest in society, this should be done in a way that limits subsidies to the really deserving and the system as a whole needs to be able to charge tariffs that on average cover all costs. If this doesn’t happen then all manner of bad things will follow. As you might guess prices have been set too low by African governments. These subsidies have also been made too widely available, benefitting the elite and middle classes more than the poor (who, not having good access to the grid in the first place, don’t have ready access to these subsidies).
You can organize and shop by pricing at YOUR individual usage level, which allows you to shop and compare energy plans based on the rates you’ll actually see appear on your bill, inclusive of taxes and hidden fees. You won’t be misled by the “teaser rates” tied with higher usage levels that many homes never experience, as their usage level never reaches that pricing tier.