Buying a property is a big decision, so it is important that when you are browsing potential new homes, you also take into consideration the energy tariffs per location.
Utility Bidder has a range of seventy-two energy suppliers from which you can choose.
We will ensure you get the best rates and tariffs for your location.
Budget before you buy property
The cost of your energy bills will determine the size of your mortgage, and this is because it is not just about how much you spend on electricity and gas but also how much interest you are charged.
As a rule of thumb, homebuyers should consider the cost of connecting to their property and any additional costs associated with any appliances they may have installed in their home before deciding whether they can afford it.
Factors That Impact Your Utility Costs
Location and Residence
Escalating property prices are not the only financial consideration for new home owners or tenants wishing to locate in the UK.
The home location, its layout (whether it is North facing), its design (single or multiple stories) all impact the home temperature, and in turn your tendency to turn up the heat over the cold winter months.
In addition to the location and layout, the area your residence is situated in is another factor to consider as there are areas with higher energy consumption and demands, than others.
To avoid a nasty surprise when you receive your first utility bill, make enquiries prior to your relocation to the desirable UK, as utility bills are no laughing matter, and could leave you out in the cold!
Tariffs and costs per location
Tariffs and rates for gas and electricity vary per location region.
This is because the demand determines the supply.
- If the amount of people in an area is low, then the price of electricity tends to rise. However, if the amount of people in the area is high, then the price of power drops.
- To provide you with energy, electricity companies purchase energy from generators. These sales are made in advance, depending on estimates of future demand; so, if there is an increase in demand, then the price may go up.
- Local distribution networks help to distribute most of the energy used to power homes and businesses in Britain, and they charge energy suppliers a fee for doing so.
- In regions where it is cold, people use more electricity for heating than elsewhere. The company that distributes electricity charges extra for this because it takes into account the higher cost of supplying power to the north of England.
Electricity rates
The first cost you will need to consider is a connection fee, which your energy company charges. It covers the cost of connecting you to the grid and includes this charge and an initial payment for any equipment needed to connect you to it (e.g., installation costs).
The second consideration is your monthly charge, which covers all home electricity usage over 30 days or one year.
This amount will vary depending on how much electricity you use each month and whether any special tariffs could affect it (e.g., if there is already an existing account in place).
You can also save money if you are paying off some debt or other significant financial commitment at this time; however, keep in mind that doing so may affect future credit scores!
Gas tariffs
If a property you are looking to buy has access to gas, it will fall under a different tariff to electricity.
Gas is often more expensive than electricity in the UK, and it can be challenging to get hold of during peak times.
It is essential to check if there is always an alternative source available if your home has access to gas because if there is not, you will be charged for this instead of receiving a reasonable price for what you need.
In addition, some homes also have their boiler installed, which means they receive their bill instead of being charged by National Grid (the energy company).
- The cost of connecting your property will be around £500 per meter and will include a meter, installation, and testing of the supply lines.
- Suppose it is an ongoing expense for your business (e.g., your property owner has installed a new boiler). In that case, this should be included in monthly payments made by tenants or customers rather than being charged as part of their rent bill (which would incur interest charges).
Conclusion
Moving is an exciting venture, but the expenses of a new home and new area do not stop once you’ve unpacked all the boxes.
Every month your utility bill arrives in the post, and if you plan to connect your new property to. Gas, you will need to consider these costs.
There are different tariffs for electricity and gas, but if you are looking at buying a property with access to both services, it is important that you know how much it will cost before signing up for one or another.
Utility Bidder is in the game of bidding for you! Make your moving experience a memorable one and prevent surprises in the mail with utility costs that make you want to sell your house and move to Mars.
