Electricity is some of the most important types of commodities which has an increasing demand all over the world. Electricity, or more specifically, energy, has been a crucial part of our life. Since we can’t imagine even a single day without electricity, at least that is what the statistics say.
But when it comes to shopping for an electricity plan, most households are not bothered mainly because homeowners ignore the best energy deals available to them and end up paying more for their electricity bills.
There are several energy suppliers in the United States offering energy to fulfill the demands of consumers. Making it important to know all of them to get the best of the best Electricity plans for you and your family.
Here is what you need to know.
Types of Electricity plans
Electricity plans can vary depending upon various factors such as the rates, term of the agreement, contract policies, tariffs, and so on.
After talking with several experts and with extraordinary research work, we have brought you a comprehensive list of different types of electricity plans.
- Fixed rate
With a fixed-rate energy plan, the tariff or price per unit of electricity remains constant each month. However, let me tell you that the prices of electricity can change due to various factors such as changes in market price, increase or decrease in demand, changes in the policy by the provider, and many more.
A fixed-rate electricity plan includes contracts that can last from 12 months to 36 months. Some electricity plans with a fixed rate policy can also be of 3 months. This makes them a great energy solution not only for homeowners but also for renters and businesses.
After all, you can easily transfer your plan to a new home (if you shift to another location). Plus, consumers get the security of stable electricity prices every month.
Prepaid electricity is basically what the name suggests. A prepaid energy plan enables the consumer to pay for their electricity well before in advance, even so without any long-term energy contracts or deposits.
A prepaid plan is a great way to control energy consumption. You are the one who decides how much energy you want to pay and how much to consume.
Whereas, you might get a sudden surprise in postpaid service at month-end after looking at your electricity bills. If you are aware of your energy requirements, a prepaid energy plan is just what you need.
- Time of use plan
When shopping for an electricity plan, you might come across the term “time-of-use” at least once in a while. So, what does that mean?
Time-of-use is yet another type of electricity plan that helps you save the cost of electricity depending upon the time the electricity will be used. It is based on how much electricity the consumer use and the time of consumption.
In simple words, a time-of-use plan allows you to cut down your electricity bill by shifting your usage to that time of the day when demands are down and the cost is low.
If you aren’t home during a certain period of time (generally, at night or during weekends when electricity consumptions are all-time high), you get to benefit from a time-of-use energy plan.