Thanks to modern technology. All of us have access to heat, light and power whenever they are required. While there is no doubt that these utilities are often taken for granted, we are reminded of their presence when we receive a bill listing any surcharges at the end of the month. There are actually several factors which are involved in determining thee tariffs and in order to enjoy the most amenable rates (as well as to save a substantial amount of money), it is a good idea if we learn how they work. Let's therefore, look at the mechanics behind electricity and gas tariffs within the United Kingdom.
How do Tariffs Work?
First of all, tariffs are normally broken down in to units known as pence per kilowatt hour (p/kWh). The utility provider will essentially “add up” your energy usage within a given cycle and then divide this figure by the number of hours. This quotient is the aforementioned pence per kilowatt hour. To put this another way, such a figure is a rough representation of how much energy you are consuming per hour. However, keep in mind that this is averaged out with peak times of the day as well as times when usage is at its lowest (generally in the late evening and the early morning).
It is important to point out here that your tariffs for gas and electricity are separated by what is known as a UNIT RATE. One rate is associated with each resource. The reason that we have chosen to mention this arises from the fact that many modern economy meters display two rates in a side-by-side fashion. One corresponds to electricity and the other to gas.
What Determines Tariff Rates?
Unfortunately, there is little that can be done to change the base tariff rate. This rate is determined by three factors:
- The standing charges imposed by the company.
- The region that you live in.
- The predominant price of natural resources (such as coal and oil).
However, there are still a number of ways in which that you can lower your monthly energy bills. Let's examine this in the next section.
Money-Saving Tips and Suggestions
If you feel that your utility bills are extremely high, it is wise to consult with a professional and determine whether or not your boiler is functioning properly. Newer “green” models can vastly increase rates of efficiency. It should also be mentioned here that there are a number of money-saving incentive programmes for those who choose to renewable energy options such as solar power. Check your home for any faults associated with insulation and it is just as prudent to upgrade any older appliances which may be running up your bills needlessly every month. Other habits such a setting a thermostat at a lower temperature when you are not at home can also prove to be rewarding over time. While we may not be able to change the tariffs themselves, are are a number of methods to enjoy lower rates by thinking outside of the box.
