We're all busy, so it's easy for certain decisions to continually fall to the bottom of our to-do lists. One of those items we often neglect is our electricity contract.
Perhaps you signed up for a promotional offer that seemed like a great rate at the time. But did that the “teaser rate” expire and have you now been switched over to a higher month-to-month rate? It's important to take a moment to understand what defaulting to a rate you didn’t select really means for your pocketbook.
TrueCost tracks electric prices for 6
, and 24-month
plans in our Electric Price Index
. What you might not know is that we also track the hard-to-find 'rollover' rates from 10 of the largest providers. In short, what people pay once the term of their contract is up and they have not taken the time to select a new plan.
Fixed price plans?
12 month fixed rate plans are the most popular on TrueCost with a current average price of about 10 cents per kWh. Of course, that’s the advertised price for a standard customer but TrueCost calculates the real cost using your past usage and includes any fees and taxes.
How do non-fixed rates compare to fixed rate plans?
Below is a chart showing current rollover rates as published by each provider. The "Cost vs. Fixed" shows how much each provider's rollover rate costs vs. the lowest advertised 12-month fixed price available on TrueCost.
The lowest rollover price is 10.0 cents--pretty close to what you'd be paying if you signed a fixed rate contract
The highest rollover price is 16.0 cents--65% above the current market rate.
And finally, since cents and percentages don't mean that much, we translated that into annual savings based on an average usage of 1,510 kWh, which is the average monthly usage of TrueCost customers who have imported their meter data.
What does all this information mean for YOU?
If you are currently on a month-to-month rate because you have been too busy or had a great teaser rate, it is worth your time to check out what's available
. Right now, many shorter plans are even cheaper than the 12-month plans we used for this comparison and would be a great way for you to test drive TrueCost to potentially realize significant savings. And, when your contract is up, you can be proactive to sign up for another great plan that fits YOU.
Don't see your provider on the list or have questions about month-to-month rates that we didn't answer here? Contact us, we would be glad to help you out!