What to Look for When Comparing Fixed vs. Variable Electric Rates

Trying to compare a fixed rate electricity contract vs. a variable rate contract is like comparing apples to oranges.  The two are entirely different products that appeal to two very different types of consumers.  Before you decide what’s right for you, ask yourself the following questions:

Do you believe energy prices are more likely to go up or go down over the next 12-24 months?

If you think energy prices are more likely to go up, then now is a great time to lock in a fixed rate for the next 12 or 24 months. A variable rate follows the energy market. If energy prices go up, your rate will go up.

Do you like to spend time checking your electricity bill, reading the rates every month, and doing a monthly rate comparison?

If you don’t want to worry about your electric rates, or you have better things to do with your time than check your rates each month to see if they went up or down, a fixed rate product is best for you. If you consider yourself an energy guru and enjoy reading your electric bill routinely, you should think about a variable rate plan because you’ll at least be able to catch it when the rates spike.

If your rates shot up, would you mind paying that much higher rate for a month or two?

With a variable rate plan, if the market spikes, your rates will shoot through the roof. Of course, you won’t know about this until you get your next bill, which is 30 days after the fact. You then have to stick with the super high rates for another 30 days until the contract can be canceled.

Does it give you peace of mind to know that your rates will not change during the course of your contract?

Fixed price electric rates give you the peace of mind of knowing your rates will not go up during the entire course of your contract.

Do you believe “historical savings” on a variable rate offer a good clue to what future electric rates will be?

Some of the companies that push variable rates like to point to historical savings that would have occurred had you been on a variable rate during that period. They don’t tell you that because of the great recession and the historic downturn in the economy, wholesale electric rates went down for three consecutive years for the first time in history. In other words, this is a once in a generation occurrence that has already passed and is not likely to happen again.

Clean Currents Only Offers FIXED RATES

Clean Currents only offers fixed rate contracts because we believe it is the most consumer friendly option.  Our competitors that are offering variable rates are banking on the fact that most consumers don’t check their electric bills often or carefully. That’s not how we operate. We want to give you the best possible rate we can for clean, renewable energy while allowing you to rest assured that your family budget is protected from increasing energy prices.

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