Energy rates are fixed by the supplier to different kinds of consumers based on the usage of electrical energy. In another way, some amount of rates will be charged from consumer according to the usage of electricity. These energy rates will cover both the producing and supplying cost of electricity reasonably. Customers will pay the energy rates based on the usage of electricity. Energy rates bill and Cirro Energy Plans will differ from one customer to another customer according to its requirements. Industrial consumers will pay more energy rates while compared to domestic consumers because they use more power continuously. These energy rates will depend on some factors.
Factors in energy rates
Types of load – There are three types of load. They are domestic, commercial, and industrial. We all know that industrial consumers will use more energy or power for a long time other than domestic consumers. Based on requirements, the energy rates will be decided for customers.
Maximum demand – The capacity of the plant will decide the cost of electricity that is supplied by generating station. If maximum capacity increased automatically then generating station which is installed is also increased.
The load is required at the time – In a certain time, the load will require maximum is also included in the energy rates. An additional plant is required when the demand coincides with the consumer in maximum. On the other side, if the maximum demand of the consumer occurs in off-peak hours then there will be no additional plant capacity needed and it improves in load factor. Therefore the cost of kWh will be reduced overall.
The power factor of load – In-plant economics, power factors will play a major role. In the low power factor, there will be a loss of the system due to an increase in load current. It leads to poor regulation. A power factor correction device is installed at generating station to improve the power factor. After this process, it increases the generation cost.
Usages of energy – Using electricity for long period will reduce the cost of energy rates. Energy rates for homes are normally high and it varies in other countries.
Worldwide, the weight of the usages in energy rates for industries decreased between the median and 25th percentile, which shows that prices will relatively low tend to high specialization for industries. Energy rates for home usage have more and it for bimodal distribution across other countries, while the distribution rates of electricity for the industry will have very less variability, the fact of market regulation leads to keep the rates in low to maintain competitiveness between industries. Every government have different rules and approach to sustain the balance between environmental concerns, affordability, and other policies. So that energy rates are not stable and it changes every day every hour every minute every second. Consumers must have a concentration on energy rates because every consumer spends more amount of money in this sector. In some countries, energy rates will totally less because they have a huge number of power plants. So that they will give electricity rates low for consumers. Moreover, energy rates are most horrible nowadays, so take care more while compared to other things.