Locking In Your Home Energy Rates
What are the Benefits to Locking in home energy rate?
Locking in your home energy rate is about saving money, but it’s also about protecting the commodity portion from price swings, which Allows you to meet your budget needs.
What is a fixed rate?
A fixed rate plan offers stability and security in a volatile market. The fixed rate does not change and protects the consumer if the market rises dramatically. However, if the energy price drops, a consumer will not be able to take advantage of the discount due to their fixed rate.
How does it work?
UGI EnergyLink has the ability to offer consumers a fixed rate in home energy. The fixed rate is for 12 months and will be consistent for the duration of the contract. If the commodity price rises, the consumer is protected against any price increases. This gives the consumer the ability to budget a monthly amount toward their energy usage, placing them in control of their home energy.
The consumer will continue to receive one bill from the utility with UGI EnergyLink as their supplier at the agreed fixed rate. For consumers who do not have the ability to receive one bill based upon their chosen utility, they will continue to receive a bill from the local utility for distribution charges and one from UGI EnergyLink for the commodity charges.
Fixed rate contracts often carry a termination or cancellation fee. This is due to the power supplier purchasing the energy to fulfill a customer’s contract months in advance. If you cancel that contract, the supplier will have to sell that energy to someone else.
The consumer who signs up for a fixed rate should read the Terms and Conditions of their contract. Noting the duration of the contract, pricing, cancellation policy, and how to renew when the duration of the contract is up for renewal.
What are the Benefits to NOT Locking in home energy rates?
With a variable rate, there is no price protection, giving you little control over fluctuating rates on the market.
What is a variable rate?
Many variables determine the current price, such as supply and demand. Variable rates do not offer the same level of protection as the fixed rates; however, variable rates do offer the lowest rate possible determined by market prices.
How does a variable rate work?
Variable rates require very little work for the consumer. The consumer will continue to receive one bill from the utility with UGI EnergyLink as being their supplier at the agreed variable rate. For consumers who do not have the ability to receive one bill based upon their utility, they will continue to receive a bill from their local utility for distribution charges and one from UGI EnergyLink for the commodity charges.
Once the service begins, the consumer may cancel their contract at any time with no termination or cancellation fees. The consumer who signs up for a variable rate should read the Terms and Conditions of their contract. Noting the duration of the contract, the pricing, and how to renew the contract is up for renewal.
REMEMBER THESE FEW THINGS WHEN CHOOSING A HOME ENERGY SUPPLIER
- Find the right provider.
- Consider your pricing structure – Fixed or Variable.
- How long is the price set for?
- Are there any additional fees, like monthly consumer service charges?
- Is there an early termination fee if you decide to cancel service before the contract ends?