Utilities

What’s Included in My Electricity Bill

Woman reviewing her electricity bill.

How to Calculate Electricity Bill

Have you ever received an electricity bill and wondered how on earth it got to be that high? Continue reading to learn more about how your electric bill is broken down, the components involved, the parts of your bill that you can control, and suggestions that could help you be more energy efficient.

Cost Breakdown

At Indra Energy, we’ve created two plans for our customers to choose from – fixed rates and variable rates. Aside from the actual electricity costs from your home, you’re also paying for delivery and supply. Here’s the breakdown:

Electricity Cost

As you’ll often notice, your bill should have a detailed list of the amount of electricity used for the month. To help reduce these costs, we recommend becoming more energy efficient throughout your home – whether it’s turning off the lights, unplugging your charger, or other methods.

Supply and Delivery Charge

As mentioned earlier, a piece of your electricity bill comes from supply and delivery. To ensure consistent power throughout your home, line maintenance and upkeep are essential. This is added to the supply and delivery fee of your electrical bill. On your bill you may see “transmission fee” or something similar in that sense – some companies have their own verbiage.

Ways to Become More Energy Efficient

Learning about all of the parts of your electricity bill can help you see where you can become more energy efficient. Being energy efficient can also have a positive impact on the environment. Consider making these changes to be more energy efficient:

1) Professional Home Energy Assessment

Seeking professional help to determine your home’s energy efficiency is the first step in the right direction. Not only does this guide you to understand the areas of your home or even the appliances that need fixing, but this can help reduce your electricity costs long-term.

You’ll often hear the term “Energy Audit” thrown around when doing your search. Essentially what this entails is a professional visit to your home to examine your heating and cooling equipment – this determines whether or not they need repairing or replacing.

2) Reduce Your Thermostat

Did you know that in a typical home, heating and cooling account for about half of the energy bill? According to the U.S. Department of Energy, space heating, cooling, and water heating are by far the largest energy expenses in any home.

Now, what if we told you that the location of your home thermostat can affect the performance of your equipment? Unfortunately, it’s true and there are instances of “ghost readings,” where unnecessary heating or cooling cycles occur throughout your home. When choosing a location for your thermostat be sure to keep it away from direct sunlight, doorways, and windows.

3) Routine Appliance Checkup

Appliances are expensive enough; then when you add the operating costs on top of that, they can get out of hand (and fast). If your appliances are more than 10 years old, consider reaching out to a professional to discuss replacements.

Because 20% of the household’s energy use is from appliances, there have been many improvements made to energy technology for appliances to run more efficiently and affordably.

  • Other Things You Can Do

Turn Off Temperature Controls. There are several ways to prevent an extensive electrical bill and transform your home to become more energy-efficient. The most obvious one, yet most ignored, is turning off the temperature controls when the room is empty – especially in the winter.

Unplug. Unplugging your appliances when they’re not in use is another way to save energy. Leaving your chargers plugged into the circuit still draws energy – even if it’s not being used (and we all know that one person who loves sleeping with the TV on). But that too only draws out energy leaving you with unexpected costs on your electricity bill.

Drafts. Examine your windows and doors to ensure that there are no drafts. Not only will you remain warm and cozy through the winter, but also save money by secluding the heat in your home and not throwing it to waste. Lastly, try to avoid leaving the door open for too long as well.

Shades. In the wintertime, you’ll want to open the shades to let the light in (to keep warm) and keep the shades closed in the summertime (to keep cool). This method controls the warm and cool temperatures of your home, helping you save energy and money.

Turn Off Lights. Who needs light during the daytime? Pro tip: Turn your lights off during the day when there is direct sunlight from outside. Also, turn off all lights when leaving your home or a room of your home.

Join the Indra Energy Family

Ready to switch your energy supplier? Whether you’re looking to be energy efficient throughout your electric bill, we can help you find the right plan for you. Compare rate plans in your area today. Contact Indra Energy today to get started!

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