Are you ready to choose your next energy plans? Are you not sure exactly how to choose one or which one will serve you best in the long run? You have the power to choose the perfect solution for your home and compare your energy plan options. The question is, which is the best solution for you?
What’s the Difference?
Many people are not aware that there are two types of energy plans. If you’re considering switching or opening an account with an energy company, it is important to understand the differences between fixed-rate and variable-rate plans. Your choice will affect your monthly bills, how much energy you use, and what you have available to you when it comes to selecting your plan.
Fixed-Rate Energy Plans Explained
What Fixed-Rate Means for Your Energy Bill
Fixed-rate plans are also known as Fixed Rate Electricity or Fixed Rate Gas. Fixed-rate contracts provide a steady rate throughout the life of the contract so that if the cost of energy increases, you still pay the same amount. These plans are great for people who do not like to worry about fluctuating rates and would prefer a contract that they know will remain the same.
What it Means for Your Energy Use
Fixed-rate contracts typically require a 12, 18, or 24-month commitment depending on your state’s requirements. These contracts can be good for people who use less energy and aren’t planning to move anytime soon as these rates will continue until the end of your contract or until you give notice that you plan on moving. Fixed-rates plans are also helpful if you stay at home most days, but need access to electricity for work purposes.
What This Means for Your Selection
These plans are great if you live in an area where the electricity is not regulated. Fixed rates tend to be a better deal financially for customers who choose energy companies that supply their own power. Rather than buying from a third-party company at wholesale prices, fixed rates also tend to be a better option. Fixed rates tend to be less expensive than variable rates. And customers choose electricity and natural gas suppliers that do not resell other companies’ products.
Variable-Rate Plans Explained
What Variable-Rate Means for Your Energy Bill
Variable-rate plans are also known as Variable Rate Electricity or Variable Rate Gas. These energy rates change according to market conditions and can change frequently. Your energy rate will not be affected if the cost of power decreases. Variable-rate plans are a great option for people who like to shop around and stay up to date on what’s available.
What it Means for Your Energy Use
Variable rates tend to be more flexible. This means you typically have access to open-term contracts or variable monthly billing. These energy rates change if the cost of power decreases you can expect to save money. Variable-rate plans are not suitable for people who like to stay in the same place and would like a contract that never changes.
What This Means for Your Selection
Variable rates tend to be more popular when people choose energy companies that resell other companies’ products. Variable rates are also popular with people who need to use the same source of power. These people don’t necessarily want to commit or pay more than is necessary. Additionally, variable rates tend to be better if you do not rely on renewable-sourced energy.
Now that we have informed you of the difference between Fixed-Rate and Variable rates, have you figured out which plan will work for you? We hope you did! If you still need some questions answered our live chat team is always available to answer your questions!
