Friday, October 16, 2015
You Could Be Overpaying for Electricity By Thousands Yearly: When to Switch
The average American household spends about $100 a month on home heating and cooling, a cost that has increased steadily since the middle of last century. Although many home appliances are much more efficient than they used to be, the average household spends up to about 40% of their heating and cooling budget just to heat water and to run their air conditioners.
Before the relatively recent advent of deregulated energy, customers often had only one option when it came to picking local power suppliers. These large companies set their own prices and did not have any competition locally, and therefore had to reason to lower customers' costs. There was no choice when it came to power companies and no recourse for the customer if they were dissatisfied with a company's services or prices.
Nowadays, many energy suppliers are taking full advantage of the deregulation of electricity markets and are striving to help customers save on their monthly bills. Now that customers are free to choose among energy suppliers, the pressure among power companies to compete for customers is driving energy prices lower, giving providers the ability to offer perks and placing a firmer emphasis on customer service and satisfaction.
In addition to choosing lower-cost power suppliers, many Americans are choosing to upgrade their appliances and home heating and cooling systems. If the average home spends approximately $1200 yearly to heat and cool the home, the estimated savings from the simple installation of a programmable thermostat can be upwards of $120 every year.
Deregulated energy markets, coupled with appliance and home heating improvements, seem to be benefiting the American energy consumer by offering lower prices and enhanced consumer choice. A competitive energy market means that energy companies have incentives to upgrade their customer service and repair times as well as to continually improve the quality of their facilities.
Overall, electricity customers are reporting an increased level of satisfaction, citing a wider range of choice in electric providers and overall lower costs.