Types of Electricity Plans: Fixed vs. Variable
Electricity is often a confusing subject since it’s not something most people deal with on a day-to-day basis. Kilowatt?? Kilo-What!?!
We’re here to help. Don’t worry about making sure you have the best deal on you electricity plan. Our energy experts shop the market daily for the best products and electricity prices and can deliver for you without worry.
Fixed-Rate Electricity Plans
With fixed electric plans, you are going to be charged the same price per kilowatt-hour every month, whether the market goes up or down. If you can get in when the market is low, you stand to save a lot of money when the market go up. Furthermore, your bill isn’t going to swing wildly up and down because of a changing cost of electricity. You might use more electricity in the summer and winter months, but at least the prices won’t be any different then.
The greatest feature of a fixed plan is its protection. In Texas, everyone can still remember the outrageous electricity prices from the February ice storm of 2021. The people who had bills for thousands of dollars could have prevented that simply by having a fixed plan. When the price of electricity goes up 1000% overnight, you still pay the same amount. Whether you live in Texas or not, this is a risk.
Variable Electricity Plans
With variable-rate energy plans, your energy rate is going to change monthly as the electricity market fluctuates. When the market is low, your cost will be low. When the wholesale cost of electricity goes up, your costs will too. If you think the market is going to stay low, a variable rate might save you a significant amount of money.
The downside is that when the market skyrockets, so too will your rate. Again, Texas’ ice storm of 2021 is a perfect example of this. The people who had electricity bills for thousands of dollars received those because they had a variable rate. When you agree to pay a price that’s tied to the market, you risk those insane spikes on your bill.
Which Is Better: Fixed or Variable
Both types of electricity plans have their pros and cons. TruEnergy, however, generally recommends fixed-rate plans. The reason is simple: variable electricity plans have the potential to save you a little money sometimes. However, the amount it can cost you is virtually unlimited. We don’t want to risk our customers having to spend thousands (or tens of thousands) of dollars just because we hoped to save them a few pennies.
We understand that the chance of this happening is slim. How often does the energy market shift that wildly? Not often. Some of our customers still prefer to take the risk for the chance of savings from a variable rate. If this is you, we can certainly help you too!
We work with all major electricity providers nationwide and can often get you a better rate on your energy than you could get on your own.
Take the hassle out of setting up your electricity bill. We’ll find the best electricity rates for you so you’ll KNOW you’re not overpaying.
We work with clients in every deregulated market in the US, including Texas. Whether you’re in Houston, Dallas, Midland, or any other deregulated area, we can help!
Blend and Extend
We talk to a lot of people who are currently locked into an energy agreement and think they are unable to take advantage of the lower rates that are available. Even if you are currently in a contract, we have numerous ways we might be able to help you lower your power bill.
Depending on which supplier you currently use, we can often get them to lower your rate in return for extending the length of your agreement. They will blend your current rate with the lower market rate that is available and then extend the term.
Whether you’re with Reliant, TXU, or any of the other providers, let us take a look and see if we can lower your bill!
Comparing Electricity Rates vs Electricity Plans
How do you know you’re getting the best electric rate? Normally, you’d go to the pricing table, compare several plans to find the cheapest price and select that rate, but we can lock in lower prices than what most providers show online. Don’t get fooled by a cheap introductory rate and end up with a jaw-dropping bill. Depending on the plan you sign up for, you could end up overpaying for each kwh of power you use. If a provider offers you something for free, they’re going to make up for it elsewhere.
The Best Energy Plan For Your Bill
It can be hard to sort through due to the myriad of marketing tactics used by suppliers when it comes to picking an electric plan. Depending on your energy usages, you could end up with large fees if you don’t hit a certain electricity use threshold each month.
TruEnergy has electricity experts who can find you the best electricity rates based on your unique usage history and help present plans that will work best for you. Don’t fall into the trap of signing the wrong agreement. We’ll make sure you know your options when making your final decision on electricity.
What Is the Best Electricity Plan?
Without knowing your specific situation it’s hard to say for sure. TruEnergy can analyze your energy bill to evaluate the specific patterns of how you use electricity. We will then work with you to figure out your specific service needs and find the best plan with the best savings. We’ll do all the heavy lifting! Sound too good to be true? Hundreds of Google Reviews don’t lie! Give us a call today, and stop overpaying for electricity.