Electricity is one of the essential things that make our lives comfortable and our homes livable.
It is a necessity that allows most of our home features, especially the power-generated ones, to function and be useful. It is also a part of our financial responsibilities since we pay monthly bills for the amount of electricity we use or consume every day.
With that financial responsibility in mind, we want to make sure that our electricity bills are all accurate. We also want to have lower bills. That is why some people switch electricity providers for their homes. Suppose you are among these people and you plan to switch your electricity provider. In that case, you must consider these things as you compare electricity rates that potential electricity provider offers for your home:
You would not know which electricity provider offers the best electricity rate for you if you don’t know which rate plan you should consider having. A rate plan in electricity means the structure of service fees that you pay for the amount of electricity you consume each month. It has two main types, including:
Fixed-Rate Electricity Plan
A fixed-rate electricity plan is a fee structure that allows you to pay the same price of electricity per kilowatt-hour each month throughout your contract. This rate plan is good for households that have a high electricity demand. You can enjoy the advantage of having a consistent or predictable monthly bill each month, which makes budgeting easier if you choose this rate plan type.
Variable-Rate Electricity Plan
The factors that can affect the electricity market price include the fuel cost, the weather, the transmission and distribution cost, the power plant cost, and the regulations that vary in each state or area. If you are from a place in Halifax, Pa, and there are some changes in its regulations, you can also expect changes in the market price and electricity rate.
You can get affected by these market price changes when you choose a variable-rate electricity plan. The price of electricity per kilowatt-hour in this rate plan changes each month as the market price changes. The advantage of having a variable-rate plan is that you can have increased savings on your monthly bill when market prices are low.
One of the essential things that you must think about before switching to a new electricity provider is how long you intend to keep a new electricity contract. Do you intend to have a long-term electricity contract? Or do you prefer to have a short-term one? Both have advantages and disadvantages. To help you decide, here is a short introduction about each of them:
Long-Term Electricity Contract
Long-term electricity contracts usually have a fixed-rate plan that can last up to five years, depending on your chosen plan length. The long-term-electricity contract’s plan length includes a 12-month contract, a 24-month, or a 36-month contract. In this contract, you can expect to have a more stable and predictable electricity rate.
Short-Term Electricity Contract
On the other hand, short-term electricity contracts have a shorter plan length that can last not more than a year. The month-to-month contract is one of the plan lengths offered in this category and has a variable-rate plan.
Incentives The Plan Offer
As you shop around to find the best electricity provider and compare their electricity rates, you must also compare the deals and incentives that they offer to lure you into signing a contract with them. These incentives usually include satisfaction guaranteed, good customer services, loyalty rewards, pay to switch, etc.
Information On The Fine Print
Before you settle to sign a contract with one of your potential electricity providers, you must always read, review, and compare all the information written on their Electricity Fact Labels or fine print. The Electricity Fact Labels contain mostly all the details you need to know about their electricity plan.
The Electricity Fact Labels contain the length of the contract, the contract terms about the plan, the additional fees, the renewable energy facts, the price of the electricity per kilowatt-hour, etc.
One indicator that an electricity provider is competent and has the best services, deals, and rates is that it mostly has good customer feedback. You may read reviews online or listen to your friends’ comments about their experiences with the electricity provider to know how they handle customers’ concerns and complaints.
We become more productive when there is a stable source of electricity at home. That is why we need to ensure that we sign a contract with an electricity provider that offers only the best deals, rates, and services. Before choosing an electricity provider for your home, the factors mentioned above are some of the things you must think about so that it would be easier for you to determine which one has the best offers for you.