Month to Month Electricity
We’ve all heard of month-to-month phone plans, but what exactly are month-to-month electricity plans? How do they work and are they a good idea? In Texas, month-to-month electricity plans have been gaining traction because of their flexibility and temptation of possible savings. They don’t always require a long-term commitment like many other types of electric plans do, and you might save a ton of money. However, before jumping the gun and thinking that this type of plan is for you, there are a few things you should consider. In this article, we’ll lay out how exactly month-to-month electricity plans work and how to find the best rate on the market.
What is Month-to-Month Electricity?
Month-to-month electricity plans are also known as variable-rate plans. With month-to-month electricity plans, the rate that you pay per kWh can change from month to month. It’s all based on what the current price of electricity is. This type of electricity plan is similar to playing the stock market. There are months when you’ll save tons of money because the price dips, but there will be other months when you pay higher rates.
How Does Month-to-Month Electricity Work?
Because the rates on month-to-month electricity plans are subject to frequent change, you typically have the option to sign up for a shorter contract term. However, if you don’t like the idea of changing power suppliers every month, you can also sign up for 6 to 24-month terms. This is risky, however, as electricity rates could skyrocket and you’re locked into a contract with ridiculously high rates and no way out.
If you’re currently trapped in an electricity plan that you can’t get out of, contact us at EnerGenie. If there’s a way for you to get out of your plan without paying a hefty fee, we’ll find it. If there’s simply no way around it, we’ll find a new electricity plan that’s so good it will save you more money than you paid to escape your old plan.
Important Things to Know About Month to Month Electricity Plans
Let’s look at a few things to consider with month-to-month electricity plans that other types of plans may not have.
1. Hidden fees.
Like nearly all electricity plans, month-to-month plans typically have hidden fees in the fine print. Hidden fees can include operational costs, startup fees, customer service fees, taxes, and minimum usage fees. The last one, minimum usage fees, is the one that you really need to watch out for.
Minimum usage fees eliminate the possibility of saving money by using less electricity. If your minimum usage is 1,000-kilowatt hours of electricity and you only use 900, you could face a hefty surcharge as a result. Minimum usage fees aren’t always obvious to see until your monthly bill shows up, and your total is higher than it should be.
2. Early cancellation fees.
Early cancellation fees are another biggie to watch out for. They’re especially precarious with month-to-month plans because they remove the possibility of escaping a bad electricity plan. There are times when paying the termination fee will save you money, but there are others when it will cost you big time.
3. The perks.
One of the advantages of month-to-month plans is that they sometimes include perks and benefits. Things like free nights and weekends, bill credit, and free signup are all possible perks and benefits offered by variable-rate plans.
4. Easy signup
Apart from usually not having startup fees on month-to-month plans, you usually don’t need a great credit score. Signing up for an electricity plan is like buying a house from some companies. If your credit score isn’t good, they may not let you sign up for their electricity. Month-to-month plans are great for people with bad or no credit.
Different Types of Month to Month Electricity Plans
Prepaid Electricity Plans
A prepaid month-to-month electricity plan is where you purchase electricity at the start of each month. It’s similar to paying for a prepaid phone. You decide how much electricity you plan on using and pay for it at the start of each month.
No Deposit Electricity Plans
Many retail electric providers are starting to implement no deposit month-to-month electricity plans. These plans allow you to sign up for free without putting down the dreaded electricity deposit.
Deposit Electricity Plans
Not all month-to-month electricity plan providers have caught on to the no deposit trend. There are still some plans and companies that charge a monthly deposit for your month-to-month plan. Once you build a relationship with your company, however, there’s a chance that they may waive the monthly deposit.
Monthly Electricity Plans
If you want an electricity plan with zero commitment and lots of flexibility, you can optionally sign up for a monthly variable-rate plan. While you’ll have to remember to resign the same contract each month, you can also opt-out without any early termination fees if the rates get too high. This type of contact offers the most flexibility, but also the most turnover.
How to Find the Best Month to Month Electricity Plan in Texas
If you think that a month-to-month plan is right for you, EnerGenie will find the best one in your area. EnerGenie is an electricity concierge service that exists for the sole purpose of finding the best electric plan based on your needs. Whether you want this type of plan for your home or business, EnerGenie is here to help.
EnerGenie will also figure out if a month-to-month plan is actually right for you. While you think that you’ll save money, EnerGenie uses smart algorithms and technology to break down your electric bill in ways you didn’t think possible. We can determine what the upcoming monthly rate will be and let you know if it’s time to get out of your month-to-month plan. We are constantly monitoring the market and on the lookout for the next best deal on your behalf. You’re guaranteed to save money and have peace of mind when you sign up with EnerGenie.
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