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 cancellation fees if you make up your mind to change your plans before ending the contract
- Your price rate for per-kilowatt hour remains the same even if the market value drops
Variable energy rate plan
In this energy plan, the market and other several factors determine the price per kilowatt-hour of electricity. Your electricity price is volatile due to frequent changes in market price. But customers get the benefit when the market price drops. But many customers may find it complicated. For this reason, many customers begin with a lower fixed-rate plan and later switch to a variable energy rate plan. So before choosing any, buyers should be careful about selecting their plan.
Advantages of the variable energy plan
- Customers can save a lot when the market price goes down
- Customers find this plan flexible for switching energy suppliers disadvantages of the variable energy plan
- Customers have to pay more when the price of fuels and natural gas gets increased
- When the market price goes up, buyers have to pay more
Why people should go for power to choose shopping electricity?
Power to Choose is the name of a state-operated electricity shopping site where providers can enlist their rate of electricity. This site is mainly designed for giving benefits to the customers of deregulated cities. Since there are a lot of providers available here, users can choose the best plan by comparing the plans of several electricity providers and their price rates.
To do this, they just need to enter their zip code on this site and the site can show you all the top electricity plans in no time. But make sure that you are a resident of the deregulated city.