With a variable-rate plan, the price you pay per kilowatt-hour for electricity may be determined by the market or other factors considered by the retail energy supplier. Since the market cost of electricity changes frequently, your rates could too. This can be a good thing when market prices drop.
Is it best to have a fixed or variable energy rate?
Fixed-rate tariffs ultimately depend on the conditions of the energy market – if wholesale prices are high, fixed deals will be less attractive. Generally speaking though, if market conditions are good and you shop around, a fixed-rate tariff will be better value than a variable-rate one.
What is a variable electricity plan?
A variable-rate energy plan means the rate your pay for your electricity or natural gas supply may fluctuate from month to month. This monthly rate will be based on the current market prices that your energy supplier pays to obtain the natural gas and electricity it sells to you.
What is the difference between a variable rate and a fixed rate for electricity?
Unlike the fixed rate, a variable rate plan changes month to month, depending on the market price of electricity. Because of the constant fluctuations of the electric market, it is likely that your electric bill will be different each month, even if you consume the exact same amount of electricity.
What states allow variable rate electricity?
Variable rate electricity plans, as well as fixed rate electricity plans, are available in all deregulated electricity markets. This includes states like Texas, Pennsylvania, Ohio, Illinois, New Jersey, Maine, etc.
Are energy prices worth fixing?
If wholesale energy prices are high, fixed-rate energy deals could cost more. But you may consider this a premium worth paying in return for the guarantee they offer that the unit energy cost won’t change. As a general rule though, you will pay less by opting to fix the cost of your energy.
Who is the cheapest energy supplier?
Top five cheapest gas and electricity deals
| Company | Exit fee | |
|---|---|---|
| 1 | Orbit Energy | None |
| 2 | Hub Energy | £30 per fuel |
| 3 | Green | None |
| 4 | Outfox the Market | None |
What is a good rate for energy?
December 2021 Electric Prices
| STATE | Dec 2021 | Dec 2020 |
|---|---|---|
| California | 19.90¢ / kWh | 19.39¢ / kWh |
| Colorado | 12.28¢ / kWh | 12.75¢ / kWh |
| Connecticut | 21.62¢ / kWh | 20.47¢ / kWh |
| DC | 13.21¢ / kWh | 13.40¢ / kWh |
Are unlimited energy plans worth it?
The concept behind unlimited energy rates is that it offers a predictable energy service to customers that may be concerned about energy prices. Provided that these energy companies use renewable energy sources, this can be an excellent choice for those who don’t want any surprises when the bill comes.