The cost of energy is taking up more and more of a consumer’s monthly bill.
The cost of providing natural gas and electricity to Illinois homes and businesses is split into two main categories: delivery costs (what Ameren Illinois pays for the power that is delivered to your business or home) and supply fees (what you pay to receive the electricity from our suppliers and then send through our network). Both are added directly to your energy bill, dollar for dollar and without any markup.
Electricity supply rates are based on market forces which means that there are no fixed prices for the power that ameren Illinois buys from other electricity suppliers and distributes through our network of distribution lines to your business or home. The cost of electricity that you pay is based on your choice of supplier and is generally higher during the summer months when it is hotter and more expensive to produce and transport energy across the country.
Switching to an electric supplier that offers “green” energy options may help lower your energy supply costs. These plans allow the supplier to buy renewable energy credits from producers. These RECs can be used to offset the electricity that you consume from Ameren Illinois and lower your overall energy consumption.
Ameren’s electricity bills have increased by 126 percent in the last year.
The cost of electricity is determined according to the amount of energy you consume and the time you use it. That is why it’s crucial to read your utility bill. It’s also a good idea to look at your meter and determine the number of kilowatt hours you are using.
Other factors can affect the price of your electricity. These include the size of your business and home and your specific needs. Some customers can take advantage of a budget billing program that sets monthly bills at predictable amounts that can help them keep their energy costs low.
If your community is part of the municipal electricity aggregate program that is deregulated, you will be able to select your electricity provider. The communities will work with an expert to negotiate a low fixed rate that’s more affordable than the Ameren rate you’re currently paying.
You can also take advantage of Ameren’s new budget billing program, which will help you reduce your energy bills overall by decreasing the number of days in a month when your electric supply is higher than usual.
It is crucial to know how your electric bill structure works. The supply section could make up a large percentage of your monthly energy bill, while the delivery section makes up less than one third.
The Ameren electric price spike is due to global market pressures as well as a capacity shortage in the MISO region that serves Ameren Illinois customers. It is also happening because of the recent price auction which didn’t generate enough power to meet the demand.