Energy rata indicates the price that customers have to pay for each unit of electricity received. There are two types of energy rate plans available for the customers. These are fixed energy plans and variable energy plans. Customers should know about these variations before selecting any plan mentioned before.
Fixed energy rate energy plan
In this plan, customers have to pay per kilowatt-hour of energy that persists similar to your contract. So if the market price increases or decreases, the energy rate of customers remains the same. A predetermined price helps how much you have decided to spend on energy every month. Since the price rate is applied for each kilowatt-hour, the customers have to pay the bill depending on how much energy they use. Apart from this, they have to pay additional fees from the utility also.
The advantages of the fixed-rate energy plan
- Your price will never increase even if the market value goes up above your set price
- Customers will get a more predictable and consistent bill every month.
- You can make a budget for your electricity costs by knowing earlier about your electricity price
The disadvantages of the fixed energy plan
- You have to pay early