Your Electricity Bill

A fixed-rate electricity plan provides consistent pricing by setting a stable rate per kilowatt-hour (kWh) for the entire contract. This setup means your per-kWh rate doesn’t change, even if the market shifts. Many customers appreciate the predictability of fixed rates for easier budgeting, as they’re shielded from sudden price hikes. However, while the rate remains fixed, your total bill may still vary each month based on how much energy you use. On the other hand, a variable-rate (or market-rate) plan features a per-kWh rate that can change monthly, influenced by energy market factors like fuel costs, supply and demand, and seasonal weather. This can mean savings when prices dip, but there’s also a chance of higher costs during peak demand times. These plans often don’t have long-term contracts, allowing for flexibility, though monthly bills may fluctuate, making budgeting more challenging. In short, a fixed-rate plan offers stability and is well-suited for those who want predictable costs. A variable-rate plan may suit those who value flexibility and the opportunity to benefit from market decreases but are prepared for potential increases in monthly expenses.