Gas and Electricity Tariffs Explained

Gas prices have been rising

Inflation has reached its peak in America and indeed in many other parts of the world. This has left ordinary working families budget difficult; not only in paying their monthly gas and electricity bills but also in finding ways to provide their family with all the basics.

Business gas prices Electricity tariffs vary considerably; you can find a lot of variation in the amount of per unit that you are charged. Generally on most business gas prices, there are basically two tariffs at the unit price and the stand-by charge. The standby charge is basically a fixed amount of money that you pay for a working gas connection to your commercial premises. This can vary from a few cents per unit to as much as five dollars per unit. There is also a renewable tariff on most gas and electricity tariffs. This deals with the generation of electricity from environmentally friendly renewable sources such as wind power or solar power.

Renewable tariffs when it comes to gas and electricity

It can vary between a few cents per unit for the supply of just one working gas connection and as much as five dollars per unit for supplies to a second home. A second home is usually an off-grid facility that receives its electricity from a different utility than that provided for the main house. As, well as this there is normally a renewable rate attached to the household gas and electricity meter, usually a portion of the cost of the gas and electricity that the family or organisation has to pay every month.

Gas prices and tariffs have been rising steadily since July last year when the price per unit reached a record high of ten dollars. Since then they have continued to increase slightly, although in July they dropped below five dollars. This seems to indicate that the increased level of competition from the different energy suppliers has had an impact. In fact there was a slight increase in the number of people that were paying the seven and eight-dollar gas standing charge, but there has been a decrease in the number that are paying more than ten dollars.

gas and electricity bills is the exit fees

As well as the above there has also been an increase in the amount of people that are aware of how much they are paying. This is down to the amount of information on the Internet regarding the different tariffs and prices. The competition among energy suppliers means that they are fighting for customers so they are likely to offer discounts to those that are aware of how much they are paying. It is worth remembering though that the different gas and electricity tariffs can vary from one company to another. You may be paying more or less than someone else, but they may also be exempt from some of the added costs such as the gas standing charge.

Another factor that will affect the amount you pay for your gas and electricity bills is the exit fees that you are liable to pay if you leave your current supplier. These exit fees differ between different suppliers and can range from two to three percent of your kwh per year. These exit fees are intended to encourage you to stay with your supplier for a longer period of time. However in the past few years these exit fees have become far more restrictive meaning that you are far more likely to leave before the end of your contract. So make sure that you get this information from your supplier before you commit yourself to a contract.

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