If you’re seeing your energy bills spike, there could be a number of reasons. Changing habits, energy-saving tips and DIY upgrades can help control your electricity costs.
Wholesale prices have decreased this year but there is a lag between those lower prices and what residents see on their power bills.
Increased Utility Rates
Many factors can cause energy bills to spike, including a high demand for power during hot weather or changes in the price of oil and natural gas. However, the biggest reason you might see an unexpectedly high energy bill is due to your utility company’s rates. Rates are typically based on wholesale energy prices, which are set by market forces, says Daniel Gardner Electrical Contractor LTD.
As a result, as demand increases, so will the cost of generating power. A prolonged cold winter last year caused the price of natural gas to rise, which pushed up electricity prices in New England and other regions that get most of their power from this source. Similarly, the drought in the western US drained energy storage levels, driving up electricity prices in the region as well.
Adding to the problem, a significant amount of the country’s electricity is still produced by burning fossil fuels such as coal and natural gas. These sources are more expensive to produce than renewable energy options such as wind and solar, which will likely continue to drive down electricity prices across the country in the future.
Amid these rising rates, 32% of US adults said they were struggling to fit energy expenses into their budgets. These consumers were leaning on loan and payment plans, cutting nonessential spending and dipping into savings.
Some states are addressing the issue by adopting policies to boost energy efficiency and expand renewables. Unfortunately, these measures don’t address the underlying issue of soaring rates. As the price of oil and natural gas rise, so do utility rates, and this leaves families struggling to pay their energy bills. This is why many low-income households have been using energy assistance programs such as LIHEAP to stay current with their bills, and why the number of households who owe money on their energy bills has hit a record high.
Poorly Insulated Home
A poorly insulated home is one of the leading causes of high energy bills. If your house doesn’t have enough insulation or it has poor insulation, you could be wasting money and exposing yourself to a variety of risks.
Insufficient insulation allows heat to escape in winter and cool air to leak out in summer, forcing your heating and cooling systems to work overtime. This drives up your power bills and strains your equipment, leaving you with a higher carbon footprint.
Fortunately, there are several signs that your insulation needs an upgrade. Uneven temperatures, which are common in homes with inadequate insulation, are a clear sign that you need to add more insulation to your attic and walls. Draughts are another telltale sign that your house is under-insulated, particularly around door letter boxes and chimneys, where heat tends to escape.
You may also notice that some rooms in your home are more comfortable than others. This is a clear indication that your insulation is lacking or has been damaged over time. If you’re concerned about the state of your insulation, you can contact an insulation specialist to perform a touch and comfort test in your home and provide a quote for an upgraded solution.
Aside from wasting money, poorly insulated homes can also lead to health problems for your family. If warm air escapes through gaps in your insulation, it can cause mold and mildew to grow in the attic and walls of your home. The mold and mildew can trigger respiratory issues for your family members. If the moisture is not treated, it can damage your walls and ceilings as well. Insufficient insulation can also freeze your pipes, especially if the pipes are located in unheated areas of your home, such as the attic, garage, and basement.
Unplugging Vampire Appliances
Have you ever noticed how much your home’s energy bills seem to rise when certain appliances are plugged in but not in use? This is known as vampire energy or phantom power. Leaving these appliances plugged in all day long draws ambient electricity, which can increase your electricity bill and harm the environment. Luckily, there are several fuss-free ways to reduce this energy drain without inconveniencing yourself.
The first step is to identify the devices that consume the most energy and unplug them. Many devices have a standby indicator light or clock that continues to draw power when they are turned off. Some of the most common energy vampires include computer monitors, cell phone chargers, coffee makers, microwave ovens and video game consoles. These devices can cost you $100 to $200 a year in extra electricity costs.
Investing in ENERGY STAR appliances can save you money on your monthly energy bills and help the environment at the same time. These appliances have been designed to run more efficiently than other models. While these appliances may cost more upfront, the energy savings will make up for the initial price tag in a few years.
You can further reduce your vampire energy use by purchasing smart power strips that recognize when an appliance goes into standby mode and shuts off the power. This will save you the hassle of having to manually turn off individual devices and will allow you to use multiple outlets at once. However, if you’re not comfortable with switching to power strips, simply unplugging your devices when they are not in use will reduce the amount of vampire energy used in your home.
Running Appliances During Peak Hours
Electricity prices spike during certain periods known as peak hours. This occurs when more electricity is used by homeowners, which in turn increases costs for everyone using the power grid. To avoid high bills, you should try to run large appliances during off-peak times. This will save you money in the long-term while also reducing your energy consumption.
Energy companies often offer time-of-use rates that allow customers to choose when their electricity will be consumed. These plans usually include on-peak and off-peak hour definitions, which differ by region. On-peak hours are typically when most people get home from work and start running appliances, such as washing machines, cooking, and televisions. Off-peak hours are during quieter periods when demand for electricity is lower, such as overnight or during the day on weekends.
Many appliances have scheduling functions that allow you to set them to run during off-peak hours. Additionally, if you have an electric car, you can wait to charge it until late at night to take advantage of cheaper off-peak electricity rates. Finally, making your home more energy efficient by properly insulating and weatherproofing it can help reduce your overall electricity usage.
Additionally, you can keep track of your energy usage through the use of online tools and apps offered by most utility providers. This allows you to identify areas where you may be consuming too much energy and make changes accordingly. Lastly, investing in energy storage systems can give you the power reserve you need to avoid high bills during peak hours. For example, you might install a solar battery that can be charged during off-peak hours and then used when the grid is most expensive.
Faulty Wiring
Despite the current energy crisis, it’s vital that you regularly check your home’s wiring for any signs of potential problems. In addition to driving up your energy bills, faulty wires can also be dangerous and create fire hazards in your home. The first sign of electrical issues is a burning smell or sparks coming from outlets, switches and appliances. If you notice these symptoms, it’s crucial to call a professional electrician right away.
Another sign of an electrical problem is a breaker that frequently trips. Breakers serve as a safety feature that shuts off the circuit in the event of overloading or overheating to prevent fires and other dangers. If your breaker trips repeatedly, it’s likely due to an issue with the wiring and should be checked immediately.
Faulty wiring can also cause light fixtures to dim or flicker. This is often caused by old or dodgy wiring that’s no longer able to deliver enough power to your appliances. To resolve this issue, an electrician will need to examine your home’s wiring and make any necessary repairs.
It’s important to never try to fix electrical issues on your own. Attempting DIY electrical fixes can lead to serious damage and even fires in some cases. Instead, you should always hire a licensed electrician, like Milton Electric, to perform any wiring repairs or replacements. These professionals can conduct a thorough inspection and identify any underlying issues before they become more serious.
