It is natural to presume one simply has to compare the ‘per KWh rate’ charged by different firms and take the decision accordingly. However, comparing firms supplying power in your area involves something more than comparing costs. Read ahead for an overview of the various factors that you should consider when comparing a power supplier like First Energy with other firms operating in your area.
Term of the Contract
Power suppliers often require you to sign up for a minimum duration when finalizing a plan. Customers are expected to choose the term of the contract when selecting the plan and they won’t have the option of switching service providers without paying the penalty specified in the contract. Of course, firms offer better and cheaper deals for those opting for long-term contracts. Hence, it is important to consider your long-term requirements when choosing a two-year plan. A rate that seems attractive today may not help you save a lot of money when circumstances change in the future. Hence, you should search for a plan that offers maximum benefits even on short-duration contracts.
Type of Rate
Will you be charged a fixed per KWh rate irrespective of the units consumed? Or, does the supplier charge a variable rate that differs depending on the number of units consumed? In case of the latter, the rate per unit may change depending on the monthly consumption. In case of a fixed rate, you simply need to multiply the number of units with the fixed rate per unit to calculate the amount payable.
A fixed rate will help you unexpected increase in your power costs. On the other hand, a variable rate will help you pay less when you consume less in a specific month. Whether you should choose a fixed or variable rate should depend on your power requirements and consumption habits.
You should check whether the service provider offers benefits like promotional discounts and monthly fees along with penalties like early termination fees. A service provider who does not charge a termination fee will prove useful if you often switch from one service provider to another to avail promotional offers.
Considering these factors along with the unit rate will help you take an informed decision. Focusing solely on the rate may prove to be a flawed decision that may lead to an increase in your overall power costs.