Why is my electric bill so high in 2022?
Solar Performance Specialist
There's no need to feel alone if you're wondering why your electric bill is so high. Due to economic recovery following COVID 19, power demand is hitting high records. Along with high international coal prices that’s now affecting the energy market, many metropolitan cities have seen higher bills. According to government sources, the power purchase adjustment costs (PPAC), which discoms impose on consumers, have increased in Delhi by 4%. In Maharashtra, consumers saw an increase in electric bill of about 10%-20%.
Learn why your electricity bills are increasing and how to reduce them by reading this blog.
Understanding the billing process
If you're wondering why your electricity bill is so high, it's important to understand how your utility company calculates your bill. Utilities charge customers for the electricity they use, but they don't charge customers for the amount of time it takes them to generate that energy. Instead, utilities calculate their rates based on an average monthly demand. The total amount of kilowatt-hours (kWh) consumed by all residents in a given region during one month. In general, the more energy used by each customer's household or business per month. The greater their annual consumption and therefore the higher will be the rates of electricity.
Reasons for rising electricity costs
- As covid is still present and therefore is the restriction of movement. Due to quarantines and other restrictions on moving goods around the country and the world, many utilities are raising rates due to a shortage of supply in some regions.
- Some utilities are raising rates due to higher costs from transporting fuel across borders or through pipelines that are still not in service because they have been damaged during this time of crisis.
- Due to low coal stock levels all thermal power stations are not operational.
- As more people resume leisure travel and businesses resume normal operations, energy demand has increased.
- The cost of energy is rising due to the increasing demand for electricity. The companies that generate electricity are struggling to source materials and labor necessary to meet the demand. Therefore they are pushing up prices.
- Electricity distribution companies in Delhi said that the prices of imported coal and gas have increased, so it is necessary to increase the rates to maintain 24-hour power supply and cash flow.
Ways to reduce your electricity bill
We all know how to save energy, so I won’t spend much time telling you to turn off the lights. But one question I hear often is, “Do you really save energy by unplugging appliances?” The short answer to that is, “Yes.” According to the Lawrence Berkeley National Lab, standby power accounts for as much as 10 percent of your total home energy use — another reason why your electric bill may be so high.
There are effective ways to shave money off of your energy bill every month.
Here are some easy ways that anyone can use to reduce their electricity bill:
- If you want to reduce your electricity bill, try raising the temperature of your refrigerator and freezer compartments. The fresh food section of your fridge only needs to be at 36-38 degrees Fahrenheit. Many times fridges are programmed at 2 to 5 degrees lower than necessary. As for your freezer compartment, you only need to set it to between zero and negative five degrees Fahrenheit.
- The best way to reduce your electricity bill is to turn off and unplug your microwave before you leave for the day. Microwave ovens, along with similar appliances, tend to have other features that run all day - such as a clock or timer. This means that even as it is plugged in, it becomes a “phantom load” where it uses energy even when it is not in use.
- Keeping your fridge and freezer full is one of the best ways to reduce your electricity bill. When you completely stock your fridge and freezer, they require far less energy to keep cold. It helps regulate the temperature inside and requires much less energy to maintain. If you cannot keep them full, put bags of ice or pitchers of water in any open spaces to make sure the fridge stays efficient. You can even reorganize your fridge to make it more energy-efficient.
- Install solar panels. This is one of the best ways to save the largest sum of money on your electricity bills. By installing solar panels, you can reduce 1000’s of rupees on utility bills. They're an excellent way to save money on your electric bill and reduce the carbon footprint of your home. When it's sunny, solar panels produce free electricity and give you cleaner air. They'll also help you lower your carbon footprint by using less energy and making more environmentally-friendly choices. They're a great investment, because they can reduce your electricity bill by up to 80%-100%. If the generation of your solar plants are greater than your consumption then the extra power generated will be imported to the grid.
If you notice that your energy bill has increased, don’t panic! There are plenty of possible reasons, many of which are under your control. You may be able to make some changes to take more control of your power bill and lower it in future months. If you want to opt for solar, do let us know. We can help you get solar quickly. We offer end-to-end service and will take care of everything. We are just a call away. Feel free to contact us.