Posts
You really can't figure out electricity costs these days. The base rate changes more often than the seasons; these are also as unpredictable as the weather. The least you can do is base your dues on the current month's applicable base rate, and that's as far as you can get. You'll obtain the same benefits of paying for cheap electricity, though, if you take advantage of the dual payment plans offered by your local energy providers. Fixed and variable payment plans offer two of the most beneficial results of energy deregulation. The intense competition forces energy providers to put consumer-friendly measures on the bargaining table. Deregulation benefits consumers because they're given the freedom to choose providers, and the latter often have no other choice but to adjust accordingly to consumer demands.
Fixed electricity plans charge constant base rates, regardless of fluctuating energy prices. This means that you're insured against a potential price increase if it ever peaks on the succeeding months. You're paying for cheap electricity in the sense that you'll shoulder the same base rates no matter how absurd electricity prices get. There's a catch to this convenience, though, since you'll be required to sign up for lock-in contracts that extend from six months to two years at a time, with an option to renew after the lock-in period lapses. You'll benefit from fixed-rate plans if you're used to supplier subscriptions; the guaranteed rates will also ensure that your per-unit base charges are fixed.
A variable payment plan is the exact opposite of a fixed-term option, since the monthly fluctuation in energy prices is constantly applied to your dues. This payment plan seems like a rip-off at the outset, but you should consider the possibility of price rollbacks if you want to appreciate its benefits. The plan also comes with an open-ended contract, so you'll always have the option to terminate the service if you feel the need to insulate your finances from price increases with a fixed-term contract. You'll pay for cheap electricity during price rollbacks and recessions, but you'll also have to shoulder absurd rates during peak price periods. Lock-in contracts look very appealing in the face of these uncertainties, in spite of the charged penalties for premature contract terminations.
Subscribers benefit more from fixed payment plans if they're in it for the very long haul. Besides, the early termination penalties don't apply for subscribers who move to new residences, even if this involves switching energy providers. It's not the subscriber's fault if the current supplier doesn't cater to the new location's energy market. Permanent residences will squeeze the most benefits from fixed payment plans, especially if the subscriber is committed enough to put the house through an extended mortgage. Variable payment plans don't have lock-in commitments, which is the perfect arrangement for transient residents.
When you consider their advantages and tradeoffs, both plans do offer savings comparable to paying for cheap electricity. It's all a matter of perspective and convenience. Unless you're really a transient resident in your current address, you should try fixed plans for six months and see how your monthly dues fare with the lock-in fees. You can always turn down the renewal option and shift to other plans or providers afterwards.
Fixed electricity plans charge constant base rates, regardless of fluctuating energy prices. This means that you're insured against a potential price increase if it ever peaks on the succeeding months. You're paying for cheap electricity in the sense that you'll shoulder the same base rates no matter how absurd electricity prices get. There's a catch to this convenience, though, since you'll be required to sign up for lock-in contracts that extend from six months to two years at a time, with an option to renew after the lock-in period lapses. You'll benefit from fixed-rate plans if you're used to supplier subscriptions; the guaranteed rates will also ensure that your per-unit base charges are fixed.
A variable payment plan is the exact opposite of a fixed-term option, since the monthly fluctuation in energy prices is constantly applied to your dues. This payment plan seems like a rip-off at the outset, but you should consider the possibility of price rollbacks if you want to appreciate its benefits. The plan also comes with an open-ended contract, so you'll always have the option to terminate the service if you feel the need to insulate your finances from price increases with a fixed-term contract. You'll pay for cheap electricity during price rollbacks and recessions, but you'll also have to shoulder absurd rates during peak price periods. Lock-in contracts look very appealing in the face of these uncertainties, in spite of the charged penalties for premature contract terminations.
Subscribers benefit more from fixed payment plans if they're in it for the very long haul. Besides, the early termination penalties don't apply for subscribers who move to new residences, even if this involves switching energy providers. It's not the subscriber's fault if the current supplier doesn't cater to the new location's energy market. Permanent residences will squeeze the most benefits from fixed payment plans, especially if the subscriber is committed enough to put the house through an extended mortgage. Variable payment plans don't have lock-in commitments, which is the perfect arrangement for transient residents.
When you consider their advantages and tradeoffs, both plans do offer savings comparable to paying for cheap electricity. It's all a matter of perspective and convenience. Unless you're really a transient resident in your current address, you should try fixed plans for six months and see how your monthly dues fare with the lock-in fees. You can always turn down the renewal option and shift to other plans or providers afterwards.
About the Author:
You can't determine a reference point for cheap electricity rates if you don't base it on the charge quotes offered by energy companies. You can easily compare energy prices through online switching sites; let comparison sites do all the legwork for you.
No comments:
Post a Comment