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Fixed & Variable Rates
When shopping for a new electricity supplier, one of the most important choices to make is whether you should choose a fixed-rate or a variable-rate contract.
Fixed rates stay the same for the length of the contract, no matter what the market price may be. Fixed rates can provide stability and predictability as the kWh price stays the same for the entirety of your contract. There’s also the risk, however, that the market price may drop below your fixed rate and you will end up paying more. In some instances, the supplier you choose may charge you a cancellation fee.
Variable rates reflect current market conditions – if the market price rises or drops, so does the variable rate. If you closely monitor market prices and adjust your usage, you could save. Variable rates tend to be unpredictable as they can change by the hour, day, or month, depending on the terms of your supplier’s disclosure statement.
If you still have questions about the different rates offered by electricity suppliers, please give us a call 888-559-4567, or use our contact form.