In recent years, the liberalization of the electricity and gas markets has allowed new businesses to enter the market, and various companies have begun offering low-cost electricity and gas plans.
I'm sure there are many people who wonder whether they can freely use low-cost electricity companies even in rental properties.
This time, we will explain how to review electricity and gas contracts and change company contracts for rental properties.
We will also introduce how to apply to electricity and gas companies and how to choose a company that offers low-cost plans.
If you want to reduce your monthly utility bills, please refer to this article.
What is the deregulation of electricity and gas?
Until now, the provision of electricity and gas has been monopolized by local power companies.
However, as of April 1, 2016, the electricity retail industry was fully liberalized, and all consumers are now free to choose their electricity company and rate plan.
The purpose of this was for the government to open up the electricity market, which had been operated at high costs, and reduce costs by encouraging competition among electric companies.Initially, electricity was liberalized for businesses and factories.
However, following the Great East Japan Earthquake, the goal changed to avoiding social risks by switching from a centralized electricity operation to a decentralized electricity operation using locally produced and consumed energy.
Subsequently, public opinion shifted to favor the use of environmentally friendly renewable energy sources, and the liberalization of electricity began to spread.
Then, full liberalization of the electricity market occurred in 2016, and full liberalization of the gas market occurred in 2017, making it possible to sell electricity and gas to households.
More recently, mobile phone companies and low-cost electricity companies have entered the market and are offering low-cost plans.
Depending on the provider, many different pricing structures have emerged, including combined electricity and gas plans and discount plans that include mobile phone charges.
Can I choose my electricity provider if I'm renting?
The liberalization of the electricity market has made it possible to freely choose your electricity company and use it at a lower cost.
However, I think there are many people who think, "I live in a rental property, so I can't change my contract to a cheaper electricity company."
You are free to change electricity companies even if you live in a rented condominium or apartment.
However, in the case of apartment buildings, this may not be possible.
Reasons why this is not possible include when the management company or owner has a policy to manage the electricity company for the entire building, or when the building has a high-voltage bulk power supply contract.
You will need to check with the management company or owner to see if you can change the electricity company for each property you live in.
How to change electricity companies
Next, we will explain how to change electricity companies, how to choose a company, things to be careful about, and what to do if you cannot change electricity companies.
How to change your electricity company contract
To change your electricity contract, simply apply to your preferred electricity company.
If you do not have a smart meter, you will need to have one installed at the same time as you apply.
A smart meter is a device that shares and reads data.
In recent years, major electric power companies have been proactively installing smart meters. Installation costs are basically free.
How to choose an electricity company
There are many ways to choose an electricity company, and you should choose one that suits your lifestyle.
In recent years, the number of electricity companies has increased, and the methods of selection have become more diverse. Next, we will introduce some points to consider when choosing an electricity company.
There are six points to consider when choosing an electricity company:
- Select companies based on your area of residence
- Choose by price
- Choose by time of use
- Choose based on accumulated points
- Choose by payment method
- Choose by discount services for mobile phones, etc.
Select companies based on your area of residence
First, check to see if the company you want to sign a contract with is available in your area.
Many operators only offer this service in certain regions.
No matter how cheap the price, you cannot use it if the service is not available in your area.
Also, if you are someone who is transferred frequently, you should check whether the company covers a nationwide area.
Choose by price
In recent years, many companies have entered the electricity business, and price competition for low-cost plans has intensified.
By using " Electricity Choice ," which allows you to compare electricity companies, you can compare electricity company plans for free and find the cheapest electricity company.
By simply answering a few questions online, you can receive suggestions from professionals who are knowledgeable about power switching, and they will also help you with all the troublesome switching procedures.
If you are dissatisfied with your current electricity bill, please try comparing your electricity bills below.
《 Compare electricity rate plans 》
The amount you can save per year differs between a single person and a family.
Take advantage of the services mentioned above and choose a rate plan that will give you low annual savings.
Choose by time of use
Some electricity companies offer plans that offer discounts only during certain times of the day.
For example, there are plans that offer cheaper rates at night when usage is lower, as well as plans that are cheaper on weekends.
You can also choose a plan that suits your lifestyle.
Choose based on accumulated points
Some electric power companies also offer point services.
Recently, many people are consolidating their points into one place, and some people choose their electricity company in order to collect points.
The reward rate varies depending on the point service, but the attractive feature is that points can be centralized at a reward rate of about 0.5%.
If you pay by credit card, you can also earn double points.
If you are trying to earn points, be sure to check out the point services they offer.
Choose by payment method
Electricity companies that also provide other services can combine your electricity bill with the other services you provide.
For example, major electric power and gas companies offer set plans that allow you to pay all at once.
You can also pay your mobile phone bill together with your electricity bill.
If you can make a payment together with other services, the deposit can be completed in one go, which is convenient as it saves you the trouble of making deposits.
Many people also choose this option because their preferred bank or credit card company handles payments.
Choose by discount services for mobile phones, etc.
Electric companies provide more than just electricity.
For example, mobile phone companies offer discount services when bundled with mobile phone charges.
We also offer bundled plans for electricity and gas, providing a virtual discount service.
The discount rate is often higher for families than for single-person households, so try running a cost simulation to consider the cost.
Points to consider when choosing an electricity company
There are now electricity companies that offer great deals, but there are also some things to be aware of.
For example, there are cases where you switch to another electricity company and are charged a cancellation fee.
Some people think they don't need to replace their electricity service, but sometimes the electricity company they use at their new home doesn't support the service, and in this case they have no choice but to cancel their contract, which will result in a penalty.
Also, if you cancel your mobile phone service, internet provider, or other services, your electricity bill may increase if you have an electricity plan.
When signing up for an electricity service, be sure to check whether there is a contractual requirement and whether the contract conditions apply before signing up.
If you can't change electricity companies while renting
We explained that in the case of apartment buildings, there are some properties where it is not possible to change electricity companies individually.
In particular, there are cases where a management company or owner has a contract with an electricity company for the entire building.
Depending on the property, a high-voltage bulk electricity supply contract may be entered into, meaning that you will not be able to choose your electricity company individually.
A high-voltage bulk power supply contract is a method of entering into a bulk contract with an electric company for an entire rental apartment building.
The common areas will be provided with high voltage electricity, and each unit will be provided with low voltage electricity.
The benefit for the owner is that electricity costs for the common areas can be reduced.
Another benefit for residents is that they can purchase electricity cheaply, which results in lower management fees and electricity bills.
It is also said that electricity bills will be reduced by about 5 to 10% compared to apartments that do not have a lump-sum contract.
However, this will vary depending on the facilities and size of the apartment building, so be sure to check with the apartment building management company whether the property has a high-voltage bulk power supply contract.
If you have a comprehensive contract with a management company or owner, it may be a good idea to ask them for information on plans with lower electricity rates.
Can I choose my gas company if I'm renting?
Like electricity, the liberalization of city gas in 2017 allowed new businesses to enter the gas market.
However, there are fewer new entrants than in the electricity market.
Also, depending on the property or area where city gas is available, there may be no applicable gas companies.
Although this limits options for tenants, there are plans available that offer discounts, so be sure to check whether you can choose the gas company in your area.
How to change gas companies
Next, we will explain how to change gas companies, how to choose a company, and what to keep in mind when choosing a gas company.
How to change gas companies
To change your city gas contract, just like with electricity, you need to choose a company that covers your area and complete the application process with the company of your choice.
Applications can be made online or over the phone, and service can begin within about 7 business days to 2 months, depending on the company.
In most cases, when you first move, you will use the local city gas supply in your area.
Please note that for properties that use propane gas (LP gas), it is not possible to change the gas company individually. Tenants will use the gas company designated for the property.
How to choose a gas company
When changing to city gas, there are few options available, so your choices are limited.
However, there are many companies that offer combined electricity and gas plans, making it possible to keep bills low.
Next, we will introduce three points to consider when choosing a gas company.
- Choose a company based on the area you want to relocate to
- Choose by price
- Choose by set plan
Select companies based on your area of residence
As with electricity, first check whether the gas company provides service in your area.
Especially when it comes to gas companies, there are few companies that provide this service.
In the metropolitan area and regional cities, you can choose your gas company, but in rural areas you may only have one option.
Choose by price
Although there are not many gas price simulation sites, it is a good idea to run a price simulation with each gas company and compare the prices.
As with electricity, there are providers that offer lower rates for single people and for families.
Check how much you can save and make your choice.
Choose by set plan
As with electricity, you can also choose a plan that comes with the service you use.
Many providers offer it as a set with electricity, but there are also cases where it is offered as a set with internet services etc.
Furthermore, depending on the gas company, you can sign up for a set plan which will centralize payments and eliminate the hassle of making deposits.
Things to consider when choosing a gas company
There are some things to consider when choosing a gas company.
In the case of gas, there are often set plans, so if you cancel the service that you have contracted for along with gas, you will not be able to receive the gas discount.
Additionally, some companies may charge penalties or cancellation fees.
In particular, there are few options for low-cost gas plans, so you need to be careful when canceling them. Be sure to check the contract terms before applying.
Can I choose my electricity and gas company when I move?
Some people like to apply for a low-cost plan at the same time as moving.
When it comes to electricity, if a smart meter is installed, there are low-cost electricity companies that can help you complete the process at the same time as you move.
By entering your contract and start date before you move, you can enjoy low electricity rates from the day you move in.
In the case of gas, it is possible to apply for a combined electricity and gas plan before moving. Please try to find a combined plan that you can apply for at your new home.
summary
This time, we explained how to change electricity and gas contracts for rental properties.
It is possible to change your electricity and gas contracts even when renting, but there are some properties where this is not possible.
In recent years, with the liberalization of electricity and gas markets, many businesses have begun offering electricity and gas services for households, and price competition has led to savings on electricity and gas rates.
At Denki Choice , experts will introduce you to the best electricity rate plan for you, so be sure to take advantage of this service.
You can also change your electricity contract by simply applying for the service you want to sign up for.
Find out in advance whether services are available in your area and choose a service that suits your lifestyle.
You can also change your gas contract by simply completing the application procedure.
However, please be aware that contract changes are only possible for properties with city gas, and there are fewer companies offering this service than for electricity.
There are also many companies that offer electricity and gas as a package, which allows you to get great deals on plans and pay the bill all at once, so we recommend you consider using them.
