As you choose your energy plan, you might want to consider a variable-rate plan. The wholesale price for electricity changes constantly and a variable rate allows you to take advantage of its ups and downs. When prices are low, your electricity rate can drop to reflect the market change. On the other hand, electricity prices can rise, causing you to pay a higher rate.
Fixed-Rate plan: With a fixed-rate plan, you’ll lock in an electricity rate for the term of your contract. The most common term lengths are six ,12, and 24 months. Most fixed-rate plans charge customers an early termination fee if they switch providers before their contract expires, but your electricity rate will stay stable through the seasons. On the other hand, you may miss out on lower bills from a downturn in energy prices. If the price stability of a fixed-rate plan seems like the best option for you, lock in your electricity rate with Direct Energy’sFree Weekends plan, which provides free electricity on weekends from 6 p.m. on Friday to 11:59 p.m. on Sunday.
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