Thanks to energy deregulation consumers have the freedom to choose their own electricity provider and to purchase electricity plans that fit their usage habits.
However, by having this freedom comes a certain amount of responsibility. When your electricity contract expires, the good rate you got initially will come to an end.
Make sure you act before your electricity contract expires. The cost will be shocking if you don’t renew your contract or switch providers before it expires. Saving money on your electric bill isn’t difficult, but you have to plan and take timely action to keep your rates down.
Cheap Electricity Plans for New Customers
Deregulation creates competitiveness in the market. Competition drives prices down. That’s just simple economics.
Each deregulated electricity market has dozens of electricity suppliers all vying for your business. The electricity that you purchase is a commodity. You cannot get “better” or “worse” electricity. Wherever you purchase it from, it’s always the same. Most consumers are simply looking for the cheapest rate.
For electricity providers, winning your business means offering the lowest rates they can afford in order to attract you. You’ll usually see this with Promotional Prices for new customers.
New customers are usually offered these advertised promotional rates, and they are for the most part reserved only for new customers. Once you’ve established your service with a particular provider, most companies figure you won’t switch providers when renewal time rolls around, and the offer you will get at renewal time will be more expensive. Renewal offers can start coming well in advance of expiring contracts. Your energy company will try hard to lock you into a lengthy new contract at a higher rate.
What Happens at the End of an Electricity Contract?
Renewal offers are typically sent by electricity suppliers 30 days before contract expiration. Consumers are prompted to take action by the renewal offer. In other words, you need to sign a new contract.
If you do not make any changes, you will be enrolled in a variable rate product by default. Default variable rate products may be 50% or more higher. It’s usually one of the most expensive variable-rate monthly plans around.
The good news is that there is no contract on the month-to-month plan, and you can switch anytime without penalty.
It’s important to note – You will NOT lose power if your contract expires.
Your current electricity provider will continue to serve you but at a higher more expensive variable rate.
In the event you forget to renew your contract or switch providers at the time of renewal, you are very likely to act quickly and fix it after you receive the first electricity bill at the high variable rate.
The Better Way To Shop For Electricity
Electricity companies hope that you’ll sign an electricity contract with them and never think about it again. But you’re smarter than that.
New customers are almost always eligible for the cheapest electricity rates. Before you sign a renewal contract, always shop around and compare available rates from different providers.
SlashPlan.com is designed to make it easy for you to compare electricity rates from reputable providers in your area.
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It’s possible to schedule the date that you switch providers in advance. When you find the right electricity plan, sign up with the new provider and schedule the switch for 7-10 days before your current contract expires. If you live in Texas you’re allowed to change electricity providers within 14 days of contract expiration without incurring any penalty.
Finding a new electricity plan every year can be a chore, but let the experts at SlashPlan.com do the legwork for you and turn this into a hassle-free process. You can find, compare and enroll online in 5 minutes or less.
Instead of cutting down on your usage when you need it, simply lower your next energy bill by switching to a new electricity plan at a lower rate.