Are you having difficulty understanding your electricity bill? Electricity bills can be confusing due to the use of complex jargon and numerous numbers.
In this article, we’ll walk you through the key components of your bill so that you can understand it better and maybe even save a few euros in the process.
Let’s begin by providing you with a concise overview of your invoice. We’ll dissect the most critical elements, explaining each one to empower you to interpret it and potentially trim your costs.
Here’s what you should know:
– Meter Number: This unique identifier pinpoints the equipment installed at your residence.
– Meter Point Reference Number (CPE): This code locates your consumption site, furnished by E-REDES, the Electricity Distributor, and your Energy Supplier. A key piece of information to have on hand when contacting E-Redes.
– Contracted Power: This figure denotes the power delivered to your residence. The required power hinges on factors such as your household’s electrical equipment. If you surpass your contracted power threshold, your supply might be disrupted. Typically, customers select a power level ensuring uninterrupted supply. The supply’s quality hinges on your country’s electrical distribution regulated by E-Redes Distribution of Energy.
Do you know if your electricity is single-phase or three-phase? We can demystify it for you.
Ever heard of single-phase and three-phase electrical setups? Allow us to elucidate. Three-phase systems divide power into three distinct currents, each carrying a lesser power term. Conversely, single-phase systems consist of a single alternating current channeling the total power. Single-phase setups are prevalent in households, where consumers contract a specific power limit to connect typical appliances like kitchen utilities, water heaters, thermostats, and more.
Encountered terms like “Vazio” (Empty), “Ponta” (Peak), and “Cheia” (Full) on your bill? Feeling perplexed about their meanings? Let’s shed some light on that. Your electricity charges may fluctuate based on the time of day, with rates differing between peak and off-peak hours. Off-peak hours, typically during nights and weekends, offer cheaper rates due to lower consumption levels. Conversely, peak hours incur higher charges owing to heightened electricity usage.
Aside from consumption charges, your bill includes fixed costs such as Contracted Power, Audiovisual Contribution, and DGEG Fee. The Contracted Power, determined by your supplier, incurs a daily fee based on the contracted power, billed monthly. The Audiovisual Contribution funds public broadcasting, while the DGEG Fee supports energy systems and gas networks.
Regarding the audiovisual contribution, it entails a fixed monthly charge of €2.85 plus 6% IVA, payable through your energy bill. Eligible customers meeting the criteria for reduced contributions incur a cost of €1 plus 6% IVA. This fee, applicable to electricity consumers, is payable 12 times annually unless exempt.
DGEG Fee:
The “Direção Geral de Energia e Geologia” levies an Exploration Fee for the use and exploration of electrical installations, currently set at 0.07€.
In addition to taxes and fees, an extra charge of 0.001€ per kWh applies for the Special Electricity Consumption Tax (IEC).
To summarize, once you grasp the various components of your electricity bill, the next step is negotiating with your supplier for the best tariff. If that’s not feasible, consider switching to a provider offering better conditions, though smaller commercial suppliers may find it challenging to match larger competitors’ prices.
While numerous methods can slash your electricity bills, not all are environmentally friendly. One sustainable option is installing photovoltaic panels.
When choosing and sizing a photovoltaic system, it’s important to consider the charges incurred during the ‘Empty’, ‘Peak’, and ‘Full’ times only. The off-peak hours generally fall between 10pm and 8am, with the remaining time divided between peak and full hours. Installing photovoltaic panels will primarily affect the portion of your bill that corresponds to these times.
But what exactly are photovoltaic panels, and how do they integrate with the traditional energy grid, the installation costs, and what return on investment can you anticipate?
Photovoltaic panels convert sunlight into electricity at the atomic level, harnessing photons’ energy to generate an electric current. While the electricity generated is direct current (DC), most household appliances require alternating current (AC), necessitating an inverter for conversion. Additionally, battery storage systems are commonly employed to ensure continuous power supply by storing excess energy.
When considering a photovoltaic system, it’s important to evaluate available space, installer credentials, and the quality of the components being used.
Once installed, photovoltaic panels can significantly slash your electricity bills. To maximize savings, align your electricity consumption patterns with solar generation by charging devices during peak sunlight hours and using timers to manage appliance usage.
Any surplus energy generated can be injected back into the grid, offering several options like surplus sale contracts or direct discounts for eco-conscious consumers, or even accumulated in a battery for use after sunlight hours.
In conclusion, installing photovoltaic panels is an eco-friendly, cost-effective method to reduce electricity bills and minimize environmental impact.
Isa Conceição is the CEO of Soren – Renewable Energy Solutions, based in Almancil. She assists individual customers and small businesses seeking renewable energy solutions across Portugal. +351 910 030 423 | info@soren.pt | www.soren.pt
