An electric bill has two key factors when calculating a bill. It consist of 1) a service and distribution rate charge and 2) a supply charge (energy charge). An example would be a monthly bill that is based on a usage of 750 kWh. The total bill is $123.50, which is divided up as $58.50 for service and distribution and $65.00 for the supply charge (energy). It is the supply charge which can be lowered by switching providers. To check the energy rate being charged on the existing bill, take the energy charge such as $65 and divide it by the total kWh such as 750 kwh used in that month. This is $65/750 = $.08666 or 8.67 cents per kWh. Now if a supplier can offer a rate lower that 8.67 cents per kWh such as 6.59 cents per kWh, then calculate it against the existing bill. Take $.0659 times the total kWh, 650 x .0659 = $42.84. This is a $22.16 savings on your bill. Now before you jump at the chance to change suppliers consider two things, 1) is it a fixed charge meaning is it $.0659 each month for the life of the contract? And 2) What is the length of the contract for this new rate? Usually the $.0659 is offered for a 12 month contract, which is in your best intrest since Utility Companies will tend to raise their rates every 4-6 months, so wait and see how your 12 month contract is after 12 months on the new supplier. A supplier typically has rates for 6 mo., 12 mo., 18 mo., 23 mo., and 36 mo.
This then is how to lower your energy bill on the energy supply of your bill, not on the total bill. Check my website LENZ ENERGY to see the energy suppliers and their rates and choose the one for you!