You’re shopping for energy. Where do you start? Some industry lingo—like deregulated market, fixed pricing, and variable pricing—may be confusing. We’re here to clear it up, break down the difference between each, and point you in the direction of what’s right for your home or business.
While shopping for energy can be stressful, we’re all thankful for energy deregulation, or energy choice, which gives you the ability to “shop” for your natural gas and electricity from energy suppliers you feel best suit your needs.
The point of energy deregulation is to benefit the customer—it keeps prices low and introduces competition into the marketplace. Most energy suppliers offer either a fixed pricing option or an indexed (variable) pricing option. Let’s discuss!
What is Fixed Pricing?
A fixed pricing plan allows you to lock in one flat rate for a set period of time. This type of plan offers stability and security in an ever-changing, volatile energy market. Energy prices increase and decrease based on a number of different factors—weather, supply chain issues, power generation availability, grid infrastructure damage, natural disasters, world events, and more. Fixed pricing protects you from that uncertainty.
This varies from variable pricing, which allows you the freedom of market prices. Your monthly energy rate will change month to month—whether that’s up or down. Variable rates do not offer the same level of protection as fixed rates; however, variable rates do offer the lowest rate possible determined by market prices.
What Are the Benefits of Fixed Pricing?
When it comes to choosing a fixed pricing plan, there are many benefits.
- Stability. You don’t have to worry about your energy price fluctuating with the market each month.
- Protection. When energy prices are highest, during extreme weather temperatures, you have peace of mind.
- Better budgeting. You can trust that your locked-in rate will protect you from unexpected increases in market prices. This helps you better manage your annual energy costs.
How Does It Work?
At UGI EnergyLink, we have the ability to offer you a fixed energy rate for the duration of your contract, which is typically 12 months. You will continue to receive one bill from the utility with UGI EnergyLink as your supplier at the agreed fixed rate. Consumers who do not have the ability to receive one bill based upon their chosen utility will continue to receive a bill from the local utility for distribution charges and one from UGI EnergyLink for the commodity charges.
Note: When signing up for a fixed rate plan, read the terms and conditions of your contract, noting the duration of the contract, pricing, cancellation policy, and how to renew when the duration of the contract is up for renewal.
Choose a Reliable Partner
In a deregulated market that allows you to choose your energy partner, choose one whose reputation, history, and options outshine the competition. UGI EnergyLink is backed by UGI Corporation, a company with more than a century of experience in the energy industry. We pride ourselves on our relationships—you’ll never speak to a telemarketing company or answering service.