Why is electricity so expensive during summer?
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Top best answers to the question «Why is electricity so expensive during summer»
For many areas, summer sparks higher energy demand, causing the market price to increase. If you are on a variable-rate plan, you may see your energy rate increase this season. Even on a fixed-rate plan, you may see increased electric rates if you've switched or renewed electricity plans in the last year.
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Part 2: More Expensive Supply. The other part of the answer to why electricity prices increase in the summer has to do with supply. In order to avoid outages or power shortages, demand for electricity must constantly be matched by supply.
Because of the warmer weather in the summer, the overall energy usage rises. That means more people are using more electricity, which means that the market on electricity goes up. As the market prices rise, the suppliers purchasing electricity off the market must pay more for that electricity.
Increasing Electricity Prices For many areas, summer sparks higher energy demand, causing the market price to increase. If you are on a variable-rate plan, you may see your energy rate increase this season. Even on a fixed-rate plan, you may see increased electric rates if you’ve switched or renewed electricity plans in the last year.
If you’re wondering why those summer bills get so high, it all starts with your air conditioner. Although this powerful appliance may transform your living space into an oasis-of-chill during the dog days of summer, it’s also your home’s single most expensive appliance in terms of energy consumption.
Electricity usage patterns change from summer to winter, prompting some utilities to offer different rates based on the time of year. For example, Southern California Edison offers the same rate from 9pm to 4pm the next day during the summer, but raises the price of nighttime electricity in the winter. Here are two screenshots of the SCE website that show the difference:
“The idea is that energy is much more expensive at those certain times of day,” said Consumers spokesperson Brian Wheeler. “You know, if you imagine a 90-95 degree day in Michigan in the summer,...
Electricity prices change virtually every minute of the day, but they are typically highest in the summer. 2. Competitive Markets – In deregulated markets, the customer?s power to choose is the number one reason for variations in electricity rates. The bigger and more competitive that market is, the more variation you will likely see.
Peak hours are specific hours during the day when your utility company charges more for electricity. For example, a utility might regularly charge $0.9/kWh, but during summertime hours between...