With winter comes not only the cold but also higher electricity bills. Households relying on electric heating devices like air conditioners, heat pumps, and electric storage heaters typically see a significant increase in monthly electricity costs during the winter months. Additionally, spending more time indoors during winter means other appliances are used for longer periods. Shorter days also mean turning on lights earlier in the morning and in the early afternoon, while water heaters work at higher intensity due to lower water temperatures. All of these factors contribute to increased overall electricity consumption in our homes. In this blog, we'll explain how to analyze your electricity bills and simple tactics you can apply to reduce these costs.
Understanding the Tariff System
First and foremost, it's necessary to understand the tariff system. There are two tariffs by which electricity consumption is calculated. The low tariff applies from 23:00 to 07:00 and from 13:00 to 15:00 every day from Monday to Saturday, as well as throughout the entire day on Sunday. During the remaining hours, the high tariff applies.
The low tariff is charged at a rate of 1.8 MKD per kilowatt-hour (kWh). For illustration, one kilowatt-hour is the electricity consumed by a 100W light bulb for 10 hours.
The high tariff, on the other hand, is charged at a rate of 4.2 MKD per kWh. The same light bulb, if used for 10 hours during this period, will cost you 2.5 times more on your electricity bill. However, this is only if your consumption does not exceed the first block!
The high tariff is calculated at different prices depending on your monthly consumption. If you consume more than 210 kWh in the current month, all electricity consumed above that threshold will be charged at a rate of 5.3 MKD per kWh. The price for the highest block is 17.3 MKD.
Prices of electricity in the high tariff per consumption blocks:
| Consumption (kWh) |
up to 210 |
from 211 to 630 |
from 631 to 1.050 |
above 1.050 |
| Price (MKD) |
4,2255 |
5,2720 |
6,9121 |
17,3242 |
So, the same 100W light bulb can cost you 10 times more in the high tariff than in the low tariff. Imagine what that means for appliances with higher power consumption. For example, an air conditioner with a power of 5kW consumes about 300 kWh per month. If consumed during the low tariff, it will cost you 525 MKD. However, if consumed during the high tariff, specifically in block 4, the cost increases tenfold to 5,200 MKD!
How to Understand Your Electricity Bill?
In the electricity bills, there is a detailed breakdown of your consumption, divided into two main groups: high tariff (HT) and low tariff (LT). The high tariff is further divided into blocks, providing a detailed view of the quantity of electricity consumed in each block separately. So, if you have consumed a total of 1,500 kWh, with 500 kWh in the low tariff and 1,000 kWh in the high tariff, your consumption in the high tariff by blocks will look like this:
| Tariff |
Consumption (kWh) |
Price per kWh (MKD) |
Total (MKD) |
| LT |
500 |
1,7522 |
876 |
| Block 1 |
210 |
4,2255 |
887 |
| Block 2 |
420 |
5,2720 |
2.214 |
| Block 3 |
370 |
6,9121 |
2.557 |
| Block 4 |
0 |
17,3242 |
0 |
| Total |
1.500 |
|
6.535 |
These amounts are further subject to a transmission and distribution surcharge of 2.3 MKD per consumed kWh, a fixed access fee to the electricity distribution system of 200 MKD, VAT, and municpal tax, to arrive at the total amount of your bill.
If your consumption increases and now you've used the same amount in the low tariff but 1,400 kWh in the high tariff (400 kWh more), then their distribution by blocks will be as follows:
| Tariff |
Consumption (kWh) |
Price per kWh (MKD) |
Total (MKD) |
| LT |
500 |
1,7522 |
876 |
| Block 1 |
210 |
4,2255 |
887 |
| Block 2 |
420 |
5,2720 |
2.214 |
| Block 3 |
420 |
6,9121 |
2.903 |
| Block 4 |
350 |
17,3242 |
6.063 |
| Total |
1.900 |
|
12.944 |
In the second example, you have consumed a total of 1,900 kWh, or 25% more than in the first example. However, the surcharge for consumed electricity in your bill will be even higher, up by 100%!
How to Lower Your Electricity Bill?
Reducing electricity consumption is the first instinctive response that comes to mind, but it's not always possible or practical. However, making small changes in the way and the time we use electrical energy can yield significant results without affecting our lifestyle and comfort!
1. Rational Use of the Water Heater
Turning on the water heater during the off-peak hours is a good solution, but it can disrupt your normal functioning and comfort. Fortunately, you don't have to do this manually. There are smart water heaters that can be programmed to operate exclusively during off-peak hours while ensuring hot water throughout the day. These water heaters don't represent a significant investment but can bring you substantial savings. If replacing the water heater seems cumbersome, you can opt for a smart thermostat that is easily installed and serves the same purpose.
2. Rational Use of Air Conditioning Units
Most air conditioning units today have advanced programming capabilities. Adjust the unit to turn on automatically early in the morning so that your home reaches the ideal temperature by 7 a.m. Maintaining the temperature throughout the morning until you leave for work will consume significantly less electricity than trying to achieve a greater temperature difference. You can do the same between 1 p.m. and 3 p.m. before returning from work. Lower the temperature by a few degrees at night for better sleep and lower electricity consumption. Alternatively, there are smart devices that can be easily installed and can control the air conditioner automatically according to parameters you set, remotely from your smartphone, or automatically turning the unit on/off as you move closer or away from your home.
3. Rational Use of Household Appliances
Almost all modern household appliances such as washing machines or dishwashers are extremely quiet and have the ability to adjust start or finish times. Use these advanced features and adjust household appliances to operate as much as possible during off-peak periods.
4. Smart Lighting
LED bulbs use 80% less electricity than conventional bulbs and last at least 15 times longer. They are a logical choice both economically and environmentally. But why not take a step further? Choose smart bulbs that, besides being economical and durable, can easily connect to your wireless network and be controlled with your smartphone from a distance, or automatically according to the instructions you set.
5. Charging Battery-Powered Devices and Electric Vehicles
Charge your devices overnight when you're less likely to use them. Advanced electric vehicle chargers can be programmed so that charging occurs only during off-peak hours.
6. Energy Management Systems
This may represent a larger investment, and you need to carefully analyze whether it's a cost-effective solution for you. However, if your consumption frequently falls into the fourth block, this option should definitely be considered. These systems conduct a detailed analysis of your electricity consumption at home and provide insights into consumption by appliances and hours, enabling you to identify where the biggest opportunities for savings lie. Additionally, these systems can manage energy consumption, helping you realize the identified savings.
7. Installing Solar Panels
Solar energy has revolutionized how we power our homes. Installing a solar system at home provides access to cheap, sustainable energy, enabling significant savings while also making a positive contribution to the environment. A 6kWh solar system produces an average of about 600kWh per month. This will significantly reduce your electricity consumption from the grid, especially during peak tariff periods, when solar panels are actually producing electricity. By reducing your consumption during peak tariffs, this will also reduce consumption from the higher blocks, which is the main reason for high bills! Your investment can be recovered in as little as 5 years, allowing you to power your home with solar energy for at least 30 years with almost no additional costs.
High electricity bills represent a significant burden on the household budget. By implementing simple practices and using smart devices, your monthly expenses can be significantly reduced. Installing solar panels contributes greatly to reducing electricity bills while also helping to preserve the environment and allowing us to breathe cleaner air. Consult with solar experts to learn more about the savings you can achieve. Take the first step towards the solar revolution!