5 Questions to Ask When Comparing Energy Suppliers
What to Ask Energy Suppliers When Comparing Rates
Over the past couple of decades, many states have made it possible for you to choose your own energy suppliers. This is the result of deregulation, which is a fancy way of saying that you have a choice in where your energy comes from.
When you’re deciding where you should purchase your energy from, you’ll want to do a little bit of research into the companies you’re looking at. To help you with this process, here are some of the most important questions to ask an energy supplier.
1. What type of pricing structure do you offer?
As far as energy is concerned, there are typically two types of pricing structures: fixed-rate plans and variable-rate plans. You’ll want to know which types are available to you before making a decision to purchase energy through a company.
A fixed-rate plan means that your rate will not change based on the supply and demand in your area. You’ll know exactly what you’re paying each month and what to expect on your bill. A variable-rate plan can change at any time, which can be a good or a bad thing. If the demand is high—say, during a heat wave—your rate can increase. On the other hand, when the demand is low or you’re using energy only during off-peak hours, your rates can go down.
2. What are my options for contract lengths?
Energy suppliers can offer you contract lengths ranging from a couple of months to a couple of years at a time. Depending on how long you plan on residing in your current home and how good the current rates are, you may want to consider the length of the plan before making any decisions.
3. What happens at the end of the contract term?
You’ve reached the end of your contract term—whether it be three months or two years. Now what? Some energy suppliers may automatically renew you at the same rate and same term. Others may select the current best rate available and lock you in on that. Others may let you choose whether you’d like to continue with what you’ve been doing, choose from what’s currently available, or opt out altogether.
4. Will I be penalized if I want to terminate the contract early?
While fixed-rate plans can provide you with a better term than variable-rate plans, they can sometimes (but not always) come at a cost. Energy suppliers may charge you an early termination fee should you decide not to continue with them for a period of time. Before you get locked in, ask what will happen should you change your mind at a later date.
5. How will I pay my bill after switching energy suppliers?
Energy suppliers produce the energy needed to power your home, while the utility company is in charge of the power grid and power lines that actually connect the power to your home. This means you could be paying two separate bills to ensure service. Some energy suppliers have agreements worked out with utility companies so you can pay only one bill each month.
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Interested in choosing your own energy suppliers? We make it easy to compare rates and plans right here on our site. Find out about rates in your area on wind energy, solar energy, and more! Click below for more information, and contact us with any additional questions.
