Fixed-Rate Plans vs. Variable-Rate Plans
A fixed-rate plan is an electricity plan that remains the same throughout the duration of your contract.
Fixed rates are typically less expensive than variable rates because they’re guaranteed to stay at a certain rate for as long as you sign up for them. For example, if you sign up for a 12-month fixed-rate plan, your electricity will be charged at one price per kilowatt hour (kWh) every month during those 12 months.
Here’s how it works: You’ll pay an upfront fee and then a monthly charge each month until your contract expires. This means that even if prices change in the future, you won’t have to worry about paying more than what was originally agreed upon when signing on with this type of plan.
Variable rates are based on cost of natural gas, coal, wind or other forms of energy. These are typically tied to the wholesale cost of these resources. Variable-rate plans are great if you want to shop around for different electricity providers in San Leon or you want to make sure that you’re not paying too much for your monthly electric bill each month.
If you opt for a variable plan, it’s important to watch out for market conditions. If the wholesale prices of natural gas and other fossil fuels go up, your monthly bill goes up as well. It might be a good idea to sign on with a fixed-rate plan just in case those high prices become more common or if changes in your area start to pass these costs on to you.
Contract Lengths for Your Electricity Plan
When choosing an electricity plan, it’s important to consider the contract length. The contract length is the amount of time that you’re committed to the plan. Most plans have a contract length of 12 or 24 months, but there are a few plans that offer shorter or longer contract lengths.
Short-term plans are a great option for customers who are looking for flexibility. These plans have a contract length of 3 or 6 months, and they are perfect for customers who want to avoid long-term contracts. Long-term plans are a great option for customers who want to lock in low rates and avoid rate increases. These plans have a contract length of 12 or 24 months, and they offer the lowest electricity rates possible.
How to Find the Right Energy Plans for your Business
When you’re looking for the right energy plan for your business, it’s important to consider all of your options.
The first step is to figure out how much power you use on average per month. If you know this, then it’ll be easier to find a plan that matches with what your needs are. Once you’ve figured out how much electricity is needed per month, then it’s time to make sure that the rates fit within your budget; there are many San Leon energy providers that can help you find the perfect plan for your needs. Energy Outlet is here to help you compare your options and find the best provider at the lowest rate possible!
Frequently Asked Questions
What is the difference between a fixed-rate and variable-rate plan?
A fixed-rate plan has a set price per kWh that will not change for the duration of your contract. A variable-rate plan’s price per kWh changes with market conditions.