Energy drives and we drive our life. So in a life indirectly driven by energy, it becomes important to learn about what we pay for. Here’s a guide to Houston Energy Plans .
Energy rates – The expenditure of money on the usage of power given to suppliers by consumers at a fixed rate is called energy rates. These rates are controlled by different tariffs made to charge rational prices from consumers.
Power or majorly saying electricity is the backbone of many industries to produce and run at a proper pace and also power runs our domestic lives in this era where technology is inevitable.
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There are various methods to calculate your final bill. From energy production to bill production each step seeks the attention of the producer and supplier company. These methods are:
- Simple (or fixed)– As the name suggests, consumers simply pay as per the total usage and set price per KiloWatt.
- Tiered (or step)– Rates per unit are set according to the usage. As the usage increases the rate per unit increases.
- Time of use (YOU)– Different rates are set for the usage of power at different times of the day. This is to reduce the bulk usage of power by thousands of people together.
- Demand rates– Peak demand of consumers also lets suppliers differ the pricing.
- Tiered within YOU– This combination is solely made to reduce wastage of energy.
- Seasonal rates– Particular time of year leads to usage of more power which leads to seasonal hike in prices.
- Weekend/holiday rates– Rates differ for the days when expected consumption is high.
Although these methods are not collectively followed by each country, every country decides their own tariff and methods to charge which suits their consumers best.
So many slabs not to confuse–
Also in countries like Qatar where prices are as less as 0.03 US Dollars per unit, due to the abundance of crude oil and gas, they have to ponder less over the consumption, production, charges, and wastage of energy. While in countries like Germany prices go up to 0.38 US dollars per unit which forces people to use less energy.
A huge difference in prices
There are numerous factors affecting prices in a particular region. Here are some of them enlisted.
A major factor affecting which we can say the driving factor is the production charges. Some countries lack the resources which lead to an increase in prices. Some countries having an abundance of such resources enjoy lower per unit energy rates. Countries with solar energy as a major source are most relieved.
Many countries rely on hydrodynamic production of energy through water reserves like dams, rivers, and river falls. Countries like Pakistan, Egypt, China get a considerable amount of their total energy from hydropower.
The economic health of the country and the production company leads to dramatic changes in prices.
Yes, even power comes in various qualities. Industries require high peak power with high power factors for which they are charged more than usual. It is because a high energy supply requires reducing energy loss.