What Is a Fixed Price Electricity Plan?
With a fixed price energy plan, your supplier will predetermine your monthly energy rate. A fixed price means your rate plan will not change throughout your contract, even if market prices fluctuate. Choosing a fixed rate energy plan is an excellent way to protect against cost increases during peak seasons and prevent you from paying more when the market changes.
Benefits of Fixed Rate Electricity
Fixed rate electricity plans are a popular choice due to benefits like the following.
Your Bill Will Not Change Due to Market Prices or Conditions
Signing a fixed rate electricity plan will secure a specific rate that will only change once your contract ends. For example, if you sign a 24-month contract to pay $0.13 per kilowatt-hour, you will pay this exact rate for the next two years regardless of market fluctuations. However, before agreeing to a fixed rate plan, ensure you are not paying any unnecessary risk premiums that may cause your bill to increase each month.
Offers Protection From Price Spikes
A fixed price business electricity plan offers one fixed rate throughout a contract term. Fixed rate plans provide a hedge against volatile energy markets and are ideal for clients with a low risk tolerance and limited budget.
It Is Easier to Budget Around Your Energy Bill
Having an unpredictable energy bill can make it difficult to budget. With a fixed rate electricity plan, you will have greater predictability to make creating and maintaining a budget easier. With this information, you can accurately judge how much to set aside for your company’s energy bill instead of having to pull money from other areas of your budget to cover costs.
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