![]() ![]() For example, if the early termination fee is $50 per month and the contract has 12 months remaining, the penalty would be $600. If you cancel your agreement early, the energy provider will calculate the amount of damages they incurred due to the lost revenue and collect that amount from the customer that terminated the agreement.Īlternatively, some energy providers may charge a fixed dollar amount for each month remaining in the contract. When you sign an agreement with a new energy company, they estimate your monthly energy usage (in kilowatt hours) to determine how much electricity to purchase from the wholesale market. For example, if you see an offer that is much lower than its competitors, it is likely that the supplier has elected to pass certain components through to the final invoice instead of including it in the quoted rate.Īn early termination fee is a penalty that is charged to customers who terminate their retail electricity agreement before the end of the contract term.įor most commercial contracts, the early termination fee is based on the number of months remaining in the term of the agreement. You will see so many different rates online because the retail electric providers can choose different ways to show those rates. There are many components of electric rate. The cheapest electricity rate does not always equal the lowest electricity bill When searching online for the best commercial or residential electricity plans, different websites can show a mix of these different offers without clearly defining the differences between contract terms. Prepaid plans: This is a prepaid plan type of electricity contract where you buy the electricity before you use it.Flat-rate plans: These plans have a fixed rate per month regardless of the amount of energy consumed.Green energy plans: These plans provide electricity that is generated from renewable sources such as solar or wind power.The customer’s rate is higher during peak demand periods and lower during off-peak periods. Time-of-use plans: These plans offer different prices for electricity at different times of the day, based on the time of use like “free nights”.The customer’s rate can change from each month and is affected by changes in the market price of electricity. Variable-rate plans: These plans offer a fluctuating rate per kWh and based on the current market price.The customer’s rate is not affected by changes in the market price of electricity. ![]() Fixed-rate plans: These plans offer a fixed price in cents per kWh for the duration of the contract.There are several types of plans that customers can choose from, including: Knowing your electricity usage can help narrow the appropriate rates for your home or business. You can find your current usage in kWh by looking at supply portion of your energy bill. Texas electricity rates that you see online are quoted in cents per kilowatt-hour (kWh). ![]()
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