October 5, 2019
These days we are being urged to switch energy suppliers and find better deals. It’s about building a competitive open market now that the monopoly of the big energy companies is broken. It seems to have worked as customers are making it clear about what they are prepared to pay for their energy and how they would like it sourced.
Anyone can now go online to find help switching energy deal online. However, there are several factors to consider before deciding where to switch to. One is the length of your contract.
There are different rate types for different term lengths. These are:
Fixed-rate contracts provide you price security. You pay the same rate throughout the duration of the contract. Although you will miss being hit with price increases during your contract term, you also miss out if prices fall. You may also find yourself facing a hefty price hike when you come to renew your contact.
Multiple Year Plans
These plans have a longer contract duration. It gives price security for several years. This plan is great for managing long term saving plans as your energy rates are fixed for the next few years regardless of inflation and deflation. Although you don’t have to think about another contact for years, as with any fixed-term contract in a market with rising prices, you will have to face paying more for your energy when you renew. Unless you adjust your payments from time to time, this is almost certain to be a considerable increase.
One Year Plans
A one year plan is a sound option if you are switching to a new supplier and are not completely sure about their services. It is ideal for renters who are not intending to renew their lease at the end of the year. It also minimizes the risk of owing the company more money at the end of the contract duration.
Short Term Plans
Short term plans are often opted by renters with very short leases or seasonal homeowners. They allow you to terminate your supply and save money if you are not using the property for months at a time.
Variable-Rate and Indexed-Rate Terms
Variable-rate or indexed-rate is not fixed and fluctuates with your energy consumption and current energy rates. They are flexible and gives you the freedom to control your own energy bills.
There are two plans available for variable rate and indexed linked customers
Month to Month Payment Plan
These are postpaid plans and you pay according to your usage and the energy rate of that particular month.
This plan requires you to pay in advance for energy and then consume that set amount accordingly. This is great for staying in budget and managing finances.
Having so much choice is a result of a huge market having to adapt to its consumers’ needs to stay competitive. It means that if you are willing to be flexible in how you pay, you can find very good deals that suit your circumstances and your budget.