The minting of the penny began in 1858 and was a part of Canada’s coinage system until its final minting in 2012. After nearly six years without the penny, it might seem easy to overlook the value of a cent. Where commodities are concerned, though, the penny is still a valuable piece of the conversation.
What does commodity pricing mean for the average homeowner? Commodity pricing affects nearly all areas of pricing either directly or indirectly, from the cost of gas to the cost of a litre of milk. Families seeking to cut back on spending often look first to reign-in their spending on non-essentials such as dining out or entertainment (all the fun!). And while responsible spending is an honorable endeavor, we’re here to tell you that savings doesn’t always have to come at the expense of the fun you work so hard to have!
A Little Goes a Long Way
Many of us keep track of gas station pricing because we know that a penny or two difference in pump pricing impacts our total expenditures. We often take measures to make sure that we get the best possible price by gassing up before the long weekend price increase or making creative U-turns when we see better pricing on a competitor’s lot. But what about the price of the utilities that run in our homes for so many hours day in and day out? How much could we be saving if we reduced the expenditure per kilowatt by only a penny?
The Johnson Family pays $0.06/kWH for their electrical utilities. This family of four averages 9600 kWH annually, resulting in a total cost of $576.00. If they save just a penny per kWH, their annual price decreases to $480.00, saving them a total of $96.00 annually!
The Burst Advantage
All utility companies are not created equal – but they do purchase electricity for the same price. The price of electricity is determined by the pool price (the cost of a megawatt of power). Retailers purchase power at the pool price and add a discretionary premium to determine the customer rate per kWH.
Burst Energy has a simple formula for determining its retail rate – pool price plus a penny. That means that Burst pricing often beats those of its competitors. But that’s not all.
Putting Albertans First
If you knew that some gas stations were owned by international entities, meaning that your money would be sent out of Alberta to support a foreign market, would it impact your choice of gas station? We believe strongly in supporting our local economy. That means that the funds generated in Alberta stay in Alberta. Burst Energy is locally owned and operated, employing only within Alberta.
We encourage you to take a minute or two, and visit www.burstenergy.ca for a complimentary bill review and quote. Investing locally is easier than you think – and it could save you many pennies along the way!