What to Look for in a New Energy Plan for Your Home

Are you thinking about purchasing a new energy plan for your home? Don’t just switch over just because you see an advertisement for a nice new plan online. There are several things to take into consideration before you make the switch. Here’s what you should keep in mind when buying a new energy plan for your home:

Check the Fine Print for the Rate

When you are checking out new energy plans, you should pay careful attention to how much the provider chargers per kWh. You may not see this rate in the marketing material. Therefore, it’s always important to check the fine print. The actual cost of an energy plan could be hidden behind various discounts that some providers purport. That’s why it’s important to know the actual cost of the plan. You can choose an energy plan comparison service like Econnex to get actual dollar rates for plans rather than percentages. Services like this are also good for knowing how much a plan actually costs instead of being confused by various discount offers.

Be Aware of Termination Fees

If you are switching to a new plan from an existing home plan, make sure there are no exit fees, early termination fees, or similar fees for discontinuing the plan. Some plans may have hidden fees for termination. You should carefully examine your current plan for such. You may still be able to make the switch and avoid these exit charges. But to do that, you should be aware of what the provider will charge you first.

Will Your Energy Needs Change in the Future?

It’s highly advised to calculate your average daily consumption rate before you switch to a new energy plan. Homeowners typically do this by looking at old power bills. While you should look at your old bills to understand your usage levels better, also think about consumption levels in the future. For example, would you add new members to your household in the immediate future, in which case the power consumptions levels will increase. On the other hand, if a family member is leaving the house permanently, power consumption may slightly decrease. Your current usage rates could dramatically change in the future if you buy new electrical gadgets that consume a lot of power, decide to set up a home business, or even stay away from home for extended periods. If your current habits or living conditions might change in the future you can foresee, take that into consideration before buying a new plan.

Mind the Fixed Supply Charges

Most energy retailers impose a fee for what’s termed as fixed supply. That means you have to pay for the plan even when you are not consuming any electricity. If you plan on being away from home for some months thus using zero energy at home, these supply charges would still apply. The fixed supply charges vary between providers. You should take this into consideration if you are looking for a plan that you may not need to use each month.

Do check if the new plan allows you to pay bills conveniently and on time. Some plans offer discounts when you pay on time, so that’s something you can definitely benefit from. Also, do check if the plan charges late fees. Some of these can be hefty. Some plans do allow you to avoid late fees so that will prevent you from descending into debt.

About the author

Oliver Revilo