What Causes High Electricity Prices in the Summer
Factors Contributing to Higher Than Normal Electricity Prices
Have you noticed that your energy bills tend to be a lot higher during the summer than during other times of the year? You’re not alone. So many people are getting fed up with the steep electricity prices they’re paying during the warmer months of the year. Here are a few reasons why you may be paying a lot more to keep yourself comfortable at home in the summer.
The demand for energy is much higher in the summer than in other seasons.
A lot of the time, electricity prices are based on supply and demand. When the demand is high, the prices are generally high, too. Why is this? Because everyone needs to be using a lot of energy to stay comfortable, utility companies can get away with increasing their prices as the demand goes up.
Now, this is only true if you have a variable-rate plan, where the rates fluctuate based on the current state of the market. If you have a fixed-rate plan, on the other hand, you’re going to be paying the same rates no matter how in-demand electricity is at any given time.
Your air conditioner uses up a lot more energy than most other appliances.
Summertime brings with it hot weather, and with that comes a need to cool off if you want to stay comfortable. If you have an air conditioner in your home, you’re going to be using a lot more energy than you would during any other time of the year. You’re likely using it more frequently and making it work harder by setting the thermostat at your ideal temperature.
Your state may regulate the electricity prices, raising them during certain months.
In addition to changing their rates based on supply and demand, utility companies can adjust their prices based on the season, month, or even the time of day. Whether you know it or not, this is likely written into your service contract. However, unless you read the fine print, you might not realize the change in prices until you get your electricity bill. And this is after you’ve already used up a ton of energy. Had you known your rates ahead of time, you may have been more conscious about your daily energy usage.
The availability of certain types of energy may be less than in other times of the year.
During the rainy or winter months, for example, hydropower may be much more readily available than in the dry, summer months. Because of this and other factors, some types of electricity may not always be available to you, which is another reason why prices can be increased.
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