Skip to content

How to Choose Electricity Companies with Low Prices

October 23, 2013

Everyone wants to find the lowest prices for their utility services including electricity. There are many different options available when you’re ready to choose electricity companies that offer the lowest prices. Comparing providers can be confusing because providers offer a lot of different choices and packages. To start with, print out a copy of your latest bill. This will show your current rate and your monthly usage. You should look back at bills from several months to find out your average usage. It’s also a good idea to look at any additional service fees that may be assessed each month. Sometimes these can really add up.

With information from your current provider in hand, you’re ready to choose electricity companies to compare. Every provider is required to provide consumers with an Electricity Facts Label, EFL. This label details specific information about rates and services so customers can make comparisons between various companies. Electricity rates are based on kilowatts per hour. Current pricing for providers varies quite a bit. Some companies offer rates as low as 8 cents per kilowatt hour. Sometimes what looks like a low rate may end up expensive because of additional fees that have been added to your monthly bill. For this reason, bundled pricing may be a good choice.

Bundles are offered by some electric companies. Bundled pricing means that all the rates and necessary service fees are already added into the price so you can see the actual price you’re going to pay. In order to choose electricity companies with the lowest prices you’ll need to understand the difference between fixed and variable pricing. Fixed pricing allows you to lock into a specific rate for the length of your contract. With variable pricing, the rates may change, either up or down, during your contract. If you choose to go with variable pricing you’ll be taking a risk and you could end up paying more over the long-term.

Another consideration when you choose electricity companies is the length of contract. Sometimes a longer contract may allow you to lock into lower prices. However, keep in mind that if you want to switch providers before your contract is over you’ll likely be charged an early termination fee. This fee could actually wipe out any savings you have enjoyed. Always read the fine print and look closely at contracts to decide which one is the best electric provider for you.

Comments are closed.

Follow

Get every new post delivered to your Inbox

Join other followers: