Energy Rates

Top Questions you need to ask before buying an Energy plan

Signing up with a new energy supplier or switching to a different energy company isn’t that hard to do. I mean, it just takes a few clicks to contact the energy company and select a plan, make payments, and that’s it.

With the tight energy rates around the globe, businesses and households consider it the right time to shift electricity providers to secure better deals. So, you are not the only one in this race.

Does not matter whether you are looking for energy deals to save some extra money or expect better service from the provider, you must get all your questions addressed and doubts clarified before you pay them.

Here are the top most common questions consumers need to ask before buying energy plans.

  • How long is my contract? 

As with most energy services, the consumers should and must know how long their contract will be in the service. Usually, an average energy plan will last long for somewhat around 3 to 36 months, depending upon the policy and plan you opt for.

It is quite important to find out how long you will be locked in with an energy contract after you switch to a new provider. One more thing to note here is that long-term contracts offer energy at better rates than compared to short-term contracts.

You can contact me to ask how long the energy contract is valid and when I can renew the contract.

  • Are taxes and hidden costs included?

Most of the time, energy suppliers won’t tell you the actual energy price with taxes and additional service costs that might incur while setting up the connection or when fixing a technical problem.

This is why you should ask whether the government taxes and hidden costs, such as installation costs, etc., are included with the price per kilowatt as mentioned in the plan. If not, then ask for the true cost with all the taxes included.

  • What kind of price structure do you offer?

Understanding the price structure of the energy plan gives you extra knowledge about how your electricity prices can vary depending upon the market forces and market price. It gives you a deeper understanding of how the Energy Rates  are decided with the different price structures.

As far as electricity is concerned, there are namely two types of price structures, i.e., Fixed-rate and variable rate. Plans with a fixed rate meaning that your electricity rate won’t change even if the demand or supply fluctuates.

On the other hand, a variable rate plan is where the prices can change at any time. So, you must ask what kind of price structure the energy provider offers. We recommend a fixed rate price structure to avoid paying extra in the future.

  • What after my contract expires

You have reached the end of your energy contract. Now what? While most electricity providers may automatically renew your contract with the same rate and the same length of the agreement, that is not always the case.

Other companies can also lock you in the ongoing market rate, and some let you select whether you want to continue the plan.

Get your question answered and understand the contract policy beforehand to avoid sudden surprises.

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