Likewise, if you opt for a plan like our Gas And Electric Power example, but in some months only hit 990 kWh of energy use, the $35 discount for cresting $1,000 kWh won't apply — and your bill is going to show it. Picking the right plan for you requires two things: an intimate knowledge of your home’s typical energy use, and a critical eye on any plan’s fine print.
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.
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