Energy deregulation creates competition and diversity in the industry. It allows you to choose your energy plan as well as your electricity provider. When looking to find the best energy plan for you, it is important to consider all the different types of energy plans that are made available through energy deregulation.
Fixed-Rate Energy Plans
Likely the most popular energy plan option is a fixed-rate energy plan. This is due to the stability, security, and predictability these plans provide. With a plan like this, you will choose a contract with a set amount of time and a set electricity rate. For the duration of your contract, you will receive reliable energy at the same price each month. The plans can come with contracts of any amount of time but they typically range from 3 months to 3 years. Once you sign up for this type of plan, you do not have to worry about your energy for the duration of the contract you choose.
This is likely the best option for a large family in need of security and safety with their electricity. It is also a great long-term solution. The downside is that these contracts often require a cancellation fee and can be difficult to get out of if that is ever needed for any reason.
Variable-Rate Energy Plans
This type of energy plan is practically the opposite of a fixed-rate plan. With a plan like this, your electricity rates will vary each month depending on the state of the market. During the months where energy prices spike, you will have to pay more for electricity, but during slower months, you will benefit from lower energy bills. This is a great option for someone willing to take risks. It is also a perfect short time option because these plans typically require no contract or commitment. They usually run on a month-to-month basis and allow you to cancel any time you want or need to. This plan is perfect for someone living on their own or someone who moves around a lot.
Green Energy Plans
Some energy provider companies offer plans that allow you to use green, renewable energy to power your home. These plans could come as both fixed or variable rate options. Some energy providers allow you to add a green energy option to your already existing energy plan.
Unique Energy Plans
Several provider companies will offer unique energy plans to stand out from their competition. Some plans may include free nights or weekends and other beneficial discount opportunities. Other options could include extra benefits such as an Amazon Alexa Dot or a Google Home Hub. Some companies such as Direct Energy may offer both in one. They have an energy plan that gives you free weekends and comes with an Amazon Alexa Dot.