Why My Energy Bill Is So High? What I Can Do About It?

Energy bills typically increase during the winter. Your electricity usage increases while using water heaters, HVAC systems, and home heating, and this is reflected in your heating bill. It takes more energy to heat your home than to cool it. Consequently, during the cooler months, especially if they reside in a cold climate, the typical homeowner will incur higher energy expenditures. Heating and cooling your home can account for up to 50% of your energy use.

Your energy bill may have increased recently, which can be annoying. Higher electricity costs are to be expected if your usage has grown. You can check your energy use through your home energy rating. If your energy use hasn't changed, the issue may lie with your utility company.

This article addresses the increase in electricity prices and offers advice on what steps to take, what options you have for contracts, and how to reduce your energy use.

What makes my electricity bill so high?

There are a few reasons why your electricity bill might be high. Here the reasons are described below:

Wholesale price fluctuations

Australia's wholesale electricity market has seen significant price hikes since April 2022. While there were predictions of a 5% increase in prices for 2024, the market is still volatile. Factors like global energy demand and the transition from fossil fuels to renewables can contribute to price increases. This is attributed to a few factors:

• Coal plant outages reduce supply

• Increased costs of natural gas used for electricity generation

• Higher overall demand on the grid

Plan changes

Some retailers might have adjusted their plans or discounts, so it's worth checking your latest bill and comparing it to previous ones. You can also research better deals from other providers.

Vampire appliances

Vampire appliances are a major contributor to excessive electricity bills. Vampire appliances are an appliance that's always plugged in and uses electricity even when it's turned off. This is typical of many modern appliances that, when switched off, really shut off. For ease of turning back on when needed, the majority of devices default to standby mode.

High electricity usage devices are:

• Washing Machine

• Dryer

• Microwave

• Dishwasher

• Lighting devices

• TVs

Putting equipment on power strips and turning the strips off when not in use is one way to get better control over your excessive electricity consumption. Due to its total shutdown, this guarantees that no power is being lost from the gadget.

Old appliances

Your old appliances can be to blame if you're wondering what makes electricity fluctuate. This month's high electricity costs can be the result of using that old refrigerator or washing machine more often than you did last month. It's for a very straightforward reason. More efficiency is built into new appliances. Energy savings of between 10 and 50 per cent are assured with these appliances compared to standard appliances.

Insufficient insulation

A house with inadequate insulation is another silent culprit that contributes to excessive energy expenditures. Our residential heating and cooling systems account for a significant portion of your energy costs. Because of this, if your air conditioning or heating system isn't adequately insulated, you may be wasting your money.

Older windows and larger draughty spaces like attics or basements frequently cause high electric expenses. Air can escape your home due to these two problems.

What can I do to get rid of high energy bills?

There are various steps you may take to make sure your utility company doesn't overcharge you.

Perform an energy audit on your house

If you're looking for a solution as to what makes your electricity bill high, a good start would be monitoring power uses in your house with an assessment by professionals. You can also find a solution by discussing it with them. If you want to earn at least a 6-star energy rating in Victoria, an energy audit with the best valued service provider like Superior Energy Rating can help you. To make your home more energy efficient you can follow some tips:

• Install smart power strips

• Fix all poor seals on windows and doors

• Check the temperature of your freezer and fridge

• Make sure all of your bulbs are LED lightbulbs

• Find and fix leaks

• Replace all filters in-house

• Do only full loads of laundry with COLD water

Keep an eye on your energy metre

Give your power company no justification for guessing at your metre reading. They can overcharge you because of this. By closely monitoring your meter and sending in quarterly readings, you can avoid approximated billing.

Avoid exit fees

Utility firms employ exit fees as a means of preventing customers from moving to another supplier. Reject these terms. Make sure there is no restriction on your utility company's ability to charge exit fees in the event that their rates increase.

Shop around

Keep searching around for better offers. Several utilities corporations’ profit from their customers' ignorance. Comparing various deals can help you save money.

Make the change as soon as possible

Most consumers never change the energy providers they use. Mainly, the belief that switching is an involved, time-consuming procedure is to blame for the resistance to change. It ought to be quick to move to a new utility provider. An image of your most recent utility bill and your ZIP code might be helpful.

Dispute your bill

Regarding an enormous power bill, you have the right to enquire with your utility provider. Once you've spoken with a supervisor and the issue is still not fixed, you have more options.

Wrap up

Wintertime is when most homes use more electricity. You may have noticed an unusually high-power bill over the past few months or even years.

Your excessive electricity bill may also be the result of your utility company. Pay attention to your energy metre and report any readings to prevent being overcharged. Utility providers that use guesses rather than precise metre readings may see a sharp increase in their electricity rates. Also, it's a good idea to routinely search for better offers and compare the rates other providers offer. If your electricity bill is more than usual, you also have the option to dispute it.