Electricity deregulation gives consumers the power to choose their own electricity provider and an electricity plan that fits their budget. With this freedom comes responsibility. That fabulous rate you signed up for with your electricity provider will come to an end when your contract expires.
Don’t let your electricity contract expire without taking action. If you let your contract expire without renewing or switching providers, you will have a shocking electric bill coming your way. Keeping your rate low isn’t overly difficult, but it does require some planning and timely action.
Cheap Electricity Plans for New Customers
Deregulation brings more competition. Competition drives down prices. Simple economics, right? Dozens of electricity suppliers operate in every deregulated electricity market and they all want your business very badly. Electricity is a commodity, it’s the same no matter where you buy it. Most consumers just want the cheapest rate.
Electricity providers know that in order to win your business they need to offer very cheap electricity rates. The advertised rates are meant to attract new customers, and, for the most part, the advertised rates are only for new customers.
Many providers count on the fact that once you sign up and establish service with them that you won’t bother switching electricity providers at renewal time.
At renewal time, the offer they give you will not be so cheap. The renewal offers may start coming as early as two months before your contract expires trying to lock you into another contract rate for a longer period of time.
NOTE: The only company we know that advertises that they give the same price to new and renewing customers is Rhythm Energy in Texas.
What Happens at the End of an Electricity Contract?
Electricity suppliers must send renewal offers at least 30 days prior to contract expiration. The renewal offer requires the consumer to take action. You must positively affirm that you accept the renewal offer from your provider. In other words, you must sign a new contract.
If you don’t do anything, you will be placed in a default variable rate product. A default variable rate product may be 50% or more higher. It’s a variable rate month-to-month plan with some of the highest rates out there. Fortunately, there is no contract on a month-to-month plan and you can switch immediately without penalty.
You will not lose power if your contract expires. You will continue to receive power from your current electricity provider, but you will pay the high variable rate. If you happen to forget to renew your contract or switch providers at renewal time, you better believe you’ll be motivated to fix it after you receive the first electricity bill at the high variable rate.
The Smarter Way To Go
Electricity providers may be betting that you’ll sign an electricity contract with them and never give it another moment’s thought—but you’re smarter than that.
The cheapest electricity rates are available for new customers. Always shop and compare available rates from different providers before you blindly sign a renewal contract. ElectricityPlans.com has the resources and tools you need to easily shop and compare electric rates from the most reputable electricity suppliers in your area.
You can schedule the date you switch providers in advance. Once you find an electricity plan that’s right for you, sign up with the new provider and schedule the switch to happen within 7-10 days prior to your current contract expiring. In Texas you can switch electricity providers within 14 days of contract expiration without being charged a penalty.
Finding a new electricity plan every year or so is a chore, but let the energy choice experts at ElectricityPlans.com help you make it easy. Switching to a new electricity plan with a lower energy rate is the easiest and quickest to save money on your next electric bill.