Compare Electricity Rates - Do Not Sign a Contract Before You Read This...

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So, You Are Looking to Compare Electricity Rates?

Searching the internet to compare electricity rates? If you’re like many homeowners and business owners in a state that has deregulated utilities, you are probably looking for ways to find the lowest natural gas and electricity rates. That’s a great start! However, there are a few things you must know before you compare energy rates. And here they are…

1. What is Your Local Utility's Rate?

If you are in any state other than Texas, your local utility company must offer a natural gas and electricity supply rate as a standard option. Many customers too often compare electricity rates to their current supplier rate and ignore the utility rate option. These utility supply rates change often and can be a good alternative when supplier gas or electricity rates are high. You can find your local utility electric rate, often called the Price to Compare, on the utility’s website. Here is an example of First Energy Utility’s Price to Compare. If you are comparing electric rates in Texas, you must choose a supplier rate, and you can ignore this advice. Let’s move on…

2. Make Sure It's Apples-to-Apples.

So, you want to choose an energy supplier? Or maybe you’re in Texas and you have no choice. There are many components to an electricity rate or natural gas supply offering. Make sure the rates are apples-to-apples. Be on the lookout for these common tricks…

 

 

  • Taxes: Do the electric rates include tax? All rates do not include tax. Be sure when you compare electric rates, they are all priced the same way. 
  • Monthly Fee’s: Some energy suppliers offer very low rates, but get you with a flat monthly fee in addition to the rate. Make sure the energy rates do not include additional monthly fees. 
  • Fixed or Variable: Most consumers look to lock in their electric rates. Do not get tricked into signing up for a low rate to find out later that it is variable and not fixed. Make sure when you compare electric rates that the rates are all fixed.

3. How Long to Lock-in?

Now the magic question: how long do you lock-in your electricity rate? Well, that depends on your outlook of the market. If you see prices rising and you can lock-in a low rate, choosing a longer term might be a better option for you. And visa-versa, if you see prices falling, you might want to consider a shorter-term option. No matter what term you choose, make sure to set a calendar reminder of your contract expiration. Energy suppliers are notorious for double charging customers when their fixed rate terms expire. Don’t believe us? Check out this article here

If you need help deciphering energy prices and comparing electricity rates, we would be more than happy to help! Contact us here.

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