Even though it’s not ideal for either party, both customers and electric service providers have to purchase electricity at current market rates. Strategically timing your switch to a new electricity provider can help you score the best electric rates in a market that’s out of your control. Another way to feel more in control when switching energy suppliers is to sign up for a fixed-rate plan.
The average home in the U.S. consumes 897 kilowatt hours (kWh) of electricity per month. Bills vary by state and region, as cost per kWh differs. To estimate average energy bills, multiply the average home’s electricity usage (897 kWh) by the cost per kWh in your state for that month. For example, the average cost per kWh in July for Colorado homes was 12.67 cents, which amounts to an average bill of about $113.65 (12.67 cents x 897 kWh) that month.
Should you choose a short-term, long-term, month-to-month, or prepaid plan? The short answer: it depends on your specific needs. How long do you anticipate living at your location? Are you deciding in the peak season (summer in Houston) or off season? All electricity providers in Houston offer a broad selection of plans for different contract lengths. Many also offer month-to-month and prepaid electricity plans. The bottom line is that everyone’s needs are different and all contract term lengths offer advantages and disadvantages.
Because prices from energy companies in Maryland rise and fall depending on the wholesale price of energy, residents may want a more stable rate for a longer period. A fixed-rate energy plan offers you just that, with a consistent rate for the duration of your agreement at current energy prices – regardless of fluctuations in the energy market. This could mean protection from rate spikes and savings for electric utility customers.
Maryland is among 15 states where electricity customers may choose their providers. It's called deregulation, but it might be less confusing to call it energy choice. Customers may select their electricity supplier - providers compete on price, term length, percentage of renewable energy and more. Electricity will continue to be delivered by a utility.
During your search, it’s important to keep in mind that your timing may be the most important contributor to actually finding the lowest electricity rates. So when is the best time to find cheap electricity rates? With the market rates for electricity fluctuating on a daily basis, we know that pinpointing the best time to switch may seem difficult. Here at Think Energy, we want to provide you with information to determine the best time for you to score the lowest energy rates.
You can organize and shop by pricing at YOUR individual usage level, which allows you to shop and compare energy plans based on the rates you’ll actually see appear on your bill, inclusive of taxes and hidden fees. You won’t be misled by the “teaser rates” tied with higher usage levels that many homes never experience, as their usage level never reaches that pricing tier.