Don’t Let Supplier Terms Of Service Surprise You
Electricity supplier terms of service aren’t the most fun reads. So even the best energy shoppers might skip checking them when they find the best electricity rates. But this can leave customers getting stuck with charges and fees they should have known about. So let’s go over why your electricity supplier’s terms of service are so important to understand.
Compare Fixed Rate And Month-To-Month
The first thing you’ll want to know is whether the plan is fixed rate or month-to-month.
Fixed rate plans are those where your per kilowatt-hour (kWh) rate remains the same for the entire term-length. For example, the Constellation 6 Month Home Power Plan charges 9.69 cents per kilowatt hour. That means the plan’s rate stays the same for the plan’s 6 month term. This makes for stable pricing and easier estimates. But the trade off is that fixed rates don’t change even if the gas market prices drop below your current rate.
Month-to-month rate plans, on the other hand, are based on current energy market conditions. So, the price per kWh rate changes each month. This means that you might get caught with a hefty bill if the rate spikes during a month. On the plus side, when market prices drop, the kWh rate also falls. So, these plans can save you money — but only until rates change again.
Also, be sure to shop for green energy plans. Some energy suppliers offer renewable energy in fixed-rate and month-to-month plans. Maryland’s solar energy progress could mean cheaper green energy rates in the years to come.
Understand Early Cancellation Fees
Electricity plans are contracts between you and the energy supplier. These contracts can last as few as 3 months or as long as 36 months. But if you want to leave a contract early to switch to a better deal, you may have to pay for early cancellation.
So make sure you know if your plan charges a cancellation fee and how much it will be. Companies like NRG Home won’t charge early cancellation fees. This means you can switch or cancel to save money at no extra cost.
Watch Out For Late Fees
Your electricity bill will list a due date and information about any past due amount owed. Utility companies consider payments made after bill due dates late. But MD law requires that late fees can not be applied if the balance is paid before 20 days after the due date. Utility late charges will be up to 1.5% of your utility charges for the first month.
Meanwhile, supplier late charges are totally separate and these will be covered on the terms of service. Some can even include legal fees and collection costs.
Bonus Tip: If you are facing hardship and have an account in good standing, try calling your utility. Most utilities will work with you to create payment plans to help you get back on your feet.
Read About Electric Supplier Contract Renewal
In MD, you have the right to receive a notice no later than 45 days before the contract term ends. This notice will explain if the new term will remain a fixed-rate or month-to-month product. It will also go over any new rates as well as when you can cancel or switch to avoid any fees. In many cases, if you ignore the notice or do nothing your provider can automatically switch you to their standard variable rate. And these can be very expensive.
Read the Terms of Service
Knowing and understanding the terms of service helps you plan ahead and save money. Especially if you want to switch to a new plan right when the old one ends. And you can shop for great plans if you keep up with https://www.mdenergyratings.com. You can also find new ways to save money and energy.