My neighbor said he would never switch his electricity provider. I asked him why. He said that he trusted his provider. I told him that I trusted them too. They billed me for electricity for 30 years at our house and never made a mistake. However as far as Texas electricity rates go, they cost me more. I finally got wise and shopped around for a lower rate. Then he said that the fine print of switching was too difficult. I told him that it really is pretty easy once you sit down for five minutes to read it.
I explained that electricity is charged to you based on a per kilowatt hour rate. That usually is just a few cents per kilowatt hour. However, every home uses enough of them to add up pretty quick. Just burning one 100 watt bulb a few hours a day is going to rack up your bill. Imagine what an air conditioner, furnace or other appliance would do to your bill. I explained that you can do things such as switching to LED bulbs, letting your house get warmer in the summer and colder in the winter to save money on electricity. However, if you are paying a higher per kilowatt hour rate, why would you do that if you did not have to?
I explained to him that other providers do have a term contract. Well, what’s the problem with that? You are not going to be shutting off your electricity while you live there. Plus, providers may have a minimum usage. Most homes meet that and then some. If you have a doubt, just review how much in kilowatt hours you have used every month for the last two years. It is on each month’s bill, or your current provider can tell you. Other than that, you just choose between fixed or variable rate plans. Fixed is better because it cannot go up. Electricity is a commodity, and it can go up and down with the stock market. Variable rates are great when it is down, but they are not fun when they go up. Just go with a fixed rate and not worry about it. Just make sure your fixed rate is lower than what you pay now. That is how you save. My neighbor gets annoyed when I give him the facts, but he did switch.