Commercial & Residential Energy Rates
Electricity and Natural Gas Price Volatility
What you should know about changing energy rates or prices and how it affects your electricity or natural gas energy bill.
Why Prices Change?
As a customer in a deregulated energy market, you are often told how competition helps drive down prices. And it’s true. That’s because energy suppliers, like Get Energy Rate, buy units of energy in a competitive open market from energy companies that either generate electricity or process natural gas. We’re pretty good at it too. You pay less because we pay less.
The prices you see on our energy rates or contracts today reflect our projections on what a fair and reasonable price would be for the term of the contract based on present market conditions. However, energy prices and energy rates go up and down over time with changes in the market.
How Fixed Energy Rate Plans Work?
At Get Energy Rate, our customers are able to “lock-in” a set price on each kilowatt-hour or therm for the duration of a contract. Energy contract terms range from 1 month to 60 months.
Why Energy Rates are Different for Different Contract Lengths?
The energy rates we quote on any given day are ultimately determined by how much we anticipate paying for gas or electricity over the length of the energy contract. The longer the energy contract, the more we may need to anticipate a higher swing in price over that time. That’s why those energy prices may reflect a marginally higher rate.
While today’s shorter term energy contracts may have a lower unit price than today’s longer term contract, this may not be the case when it’s time to renew.
Shorter energy term versus longer energy term contracts: lock in a energy rate for a longer time due to the influx in electricity and natural gas prices.
How Should I Choose?
When considering what length of a energy contract to select consider the following:
If you prefer the peace of mind that comes from knowing that your energy price won’t change for a long time, then a longer energy contract might be for you.
If you feel like it's a hassle to sign a energy contract and shop around for the best energy price, the longer contract may be the answer.
If you move often or don't want to worry about early termination fees, shorter energy contracts may be your best bet.
If you always like to find the lowest price, then shorter energy contracts might be what you're looking for.
But remember, it's very difficult to anticipate the future movement of the energy market and it's not necessarily cyclical. It's also driven by many factors. Be careful when trying to anticipate the energy market movement when deciding on the term of your energy contract.