Beware of Variable Rate Increases When You Choose an Electricity Provider

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When you’re trying to choose an electricity provider and you see a low rate, you might be tempted to immediately pursue it. But unless that rate is fixed, it could be subject to eventual increases. In stark contrast, fixed rate plans lock in a certain price for the duration of the contract.

Variable rate plans usually offer different rates than fixed rate plans, and sometimes those rates are lower. But depending on the details provided in the contract, there’s likely no guarantee on future prices. For example, residential energy customers in the northeastern United States recently struggled with variable rate increases as the harsh winter drove up the cost of production. The Public Utilities Commission (PUC) has already issued consumer alerts about the rate increases, warning customers to review their contracts and carefully review all the available information before confirming the deal.

Star Energy Partners offers a unique tool for residential customers to compare offers and eventually choose an electricity provider, including detailed information on available rates and contract lengths. When shopping around for a competitive energy supplier, be sure to take all the facts into consideration before confirming your choice. Some contracts are longer than others and carry charges for early cancellation.

What to Look For In an Electricity Provider

  • Type of rate: is it a fixed rate, a variable rate, or a mix of the two?
  • Total rate and service package: compare the prices of different suppliers to determine the best long-term choice.
  • Contract length: providers may offer discounts for extended plans
  • Fees and extra charges: some providers have extra fees you may not be anticipating
  • Terms of service: the terms of service may vary between providers

No matter what decision you’re leaning toward, Star Energy Partners can help you find the perfect plan. To learn more about the advantages of finding the right electricity provider and how to save money on your electric bill, keep reading the Star Energy Partners blog!