Did You Know: You can lock-in today’s low rates with a future energy plan

4 Minutes

For small businesses, the biggest consumption of power can be attributed to heating and cooling as well as electronics and lighting. And most businesses are able to track their energy costs and forecast for seasonal changes. Yet when we speak to business owners about their energy plan, most have simply let their plans rollover and renew with their current energy providers. The downside is that the renewal plan is usually at a higher energy rate – and the new plan may have baked-in hidden fees.

The pros of a fixed rate.

A fixed energy rate enables you to lock-in a set rate for a set period of time (i.e., the length of your contract) and will charge you the same amount per kilowatt hour of electricity each month.  An energy plan with a fixed rate will allow you to avoid the fluctuating prices of a variable rate energy plan – in which rates will change.

Energy prices fluctuate for many reasons.

Energy pices are affected by everything from weather extremes (hurricanes, extreme heat or cold) to financial market instability. Even elections cause volatility because an administration can change policies (electricity is controlled at the individual state level).

Buying early means protecting yourself against unpredictable volatility. You don’t want your energy contract to expire during one of these crisis times. With a fixed (wholesale rate ), you avoid the risk of weather, political events and other variables outside of your control.

Energy prices fluctuate for many reasons.

Energy prices are affected by everything from weather extremes (hurricanes, extreme heat or cold) to financial market instability. Even elections cause volatility because an administration can change policies (electricity is controlled at the individual state level).

Buying early means protecting yourself against unpredictable volatility. You don’t want your energy contract to expire during one of these crisis times. With a fixed (wholesale rate ), you avoid the risk of weather, political events and other variables outside of your control.

Energy is a supply and demand market.

Electricity is a commodity and trades like the stock market, with rates that move up and down on a daily basis. Energy suppliers are working to balance supply and demand and must ensure there is enough power to service their customers. Therefore, when it comes time to delivering energy to your business, suppliers schedule power on a daily, weekly and monthly basis.  

Energy plans are based on predictability.

Overall energy supply is based on predictable customer behavior – at a given point in time.  Energy suppliers want to see consistent energy usage in all of their customers in order to better forecast future supply and demand. So, if your business energy usage is consistent and predictable then the energy suppliers will provide a lower or more competitive energy rate.

When to shop for a future plan.

Shopping for a new energy plan while you currently have one may feel like a waste of time. Yet, the best time to shop for and secure a new plan is when rates are low, and long before your current contract expires so you won’t get penalized for existing contract terms.

The length of your future contract.

If your head is spinning trying to make sense of fixed rates and energy futures...no worries, we got you. EnergyBot is here to help you make smarter energy decisions. We monitor the energy market in real time, crunch the data points, enable you to compare rates quickly, and then identity the best rate for your business. We also take a look at the renewal terms of your contract and recommend the optimal time to buy a future energy plan.  

The time is now.

Right now, energy rates are at historic lows. EnergyBot will help you lock-in the best rate and contract term – some energy suppliers allow fixed rate contracts for up to five years.

EnergyBot does the homework so you don’t have to. See Today’s rates.

Written by Team EnergyBot

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