The price per kilowatt hour (kWh) tends to be a bit higher for Fixed Rate products than with Variable Rate products because Fixed Rate products guarantee your rate won’t go up during your contract term. Cheap Electricity Variable Rate plans tend to be lower than Fixed Rate plans and do not require you to sign a contract. Variable Rates are based upon the prevailing wholesale market rates and can fluctuate.
As they’re advertised, the Digital Cheapest Electric Company plan appears to save you $4 — but only if you use 32 percent of your energy on the weekends, which is the stat Switch Energy used to create the average price it advertises. Say you often travel for business during the week, and are only home cranking the air conditioner on weekends. If your energy use skews to 55 percent weekend use (for Compare Electricity Companies that means 8 pm on Friday through 12 am Monday), suddenly Gas And Electric Companies becomes a much better deal.
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