When it comes to financial planning, you have to look at all possible means of cutting down your expenses. This means you not only have to diversify and maximize your streams of income, but also look to do the same for savings. Taking energy bill into consideration, you can plan which utility companies and energy appliances that are affordable and can be considered.
The concept of deregulation
In order to get the scope of saving related to energy, you have to understand certain models. The deregulation energy market of Texas is one such model that you should get acquainted with. The Texas market is an often quoted example in this regard. The legislation that brought deregulation to power was passed in 2001.
The idea is pretty simple in the sense that under this law, it is possible for people to choose from Retail Electric Providers. In this way, you get the choice for opting for a plan that suits your finances or locality.
The deregulation of the energy market in Texas has led to lower or competitive electricity rates. Another feature of the deregulation is the bifurcation of energy from direct energy like oil and gas; and the alternate ones like solar and biofuels.
Texas energy from Direct Energy and other suppliers can be compared for the plan with most affordable rates.
The energy status quo in U.K
When the model is studied in U.K, there is no legislation when it comes to deregulation. There are as many as 18 companies supplying electricity and gas across U.K. Some companies are supplying either electricity or gas, while some provide both.
If you are looking for a cheaper electricity plan, you can do two things. The first option is to opt for a company that is providing both electricity and gas. This would cut down some expenses for you.
The section option is you can opt for a different company whose rates match with your expenses. The competition is pretty decent with 18 companies in the mix. This feature of the U.K market is similar to Texas, but the main difference is that there has been no legislation being passed for developing a deregulated market. The National Grid is managing the electricity transmission network around the area.
As far as the incentives go, they are available for both appliances as well as the energy supply. Companies that promote green technologies get incentives from the Department of Trade and Industry. The same is the case for green appliances like LED bulbs, solar panels and similar offerings.
The pricing of gas and electricity is being maintained by Energywatch which mediates the efficiency of the companies. In a similar vein, OFGEM is concerned with the maintenance of a healthy competition among the energy suppliers, and not allowing any one to create hegemony.
Proper check and balances are slowly being made in both markets. However, the focus on green energy is not there to a great extent. This can be understood from the fact that there has been an increase of 20% in the prices, which is owing to the increase in oil prices. The electricity across U.K is produced using gas, so now alternate options are being reviewed.
In a nutshell, you can moderate your finances by opting for a workable electricity model.