Over a year, you could save nearly $100 by choosing the green plan. But it’s important to note that Constellation’s attractive initial rates will very likely not be around for a second year. According to the customer reviews on Consumer Affairs, this new contract usually jacks up the price. It offers great rates for new customers, but it may not be worth it to stick with them for more than an initial contract.
Variable rate plans are always month-to-month, save for three-month intro specials in which your rate stays the same for those early months. Fixed rate plans, on the other hand, are available for periods ranging from six to 36 months. The contract lengths, and how that length influences the price per kWh rate, varies enormously from company to company. Some companies offer lower rates when you enroll for longer periods. Others raise the rate slightly. The competing rationale: You will be paying them for longer so you get a break, or you have that price locked in when energy rates inevitably rise. One rule of thumb — the longer the contract, the higher the cancellation fee.
Many people are aware that Iceland has the cleanest energy in the world by far. The island-nation generates 100% of its electricity from renewables such as hydroelectric and geothermal sources, and it’s also flirting with wind power. What those same people might not realize, however, is that this results in some of the cheapest electricity in the world.
As you shop, you’ll see the rates advertised in terms of kilowatts per hour (kWh) — the energy used to power 1,000 watts for one hour. According to the U.S. Energy Information Administration, the average price per kWh for electricity in Pennsylvania is 14.52 cents, while the Public Utility Commission's “price to compare” currently hovers around 8.0 cents. Clearly, there’s a lot of price variety out there. And, given the hundreds of providers doing business in Pennsylvania, exploring electricity options can be pretty toilsome.
When it comes to the electricity itself, there is no difference at all. A cheap electric supply is the same electricity, it's simply provided by a new supplier (unless you opt for green energy - more on that here). As suppliers buy and generate different sets of energy they also have different prices. What's more, you might be on a tariff that is simply more expensive, such as a standard tariff. If you decide to switch electricity don't equate a lower price with worse service.
If you’re looking for a new electricity deal, you’re not alone: 319,000 electricity customers switched energy supplier during January 2018, according to OFGEM*. Shopping around for the best electricity deal is simpler than you might think – but there are bound to be a few questions. Here’s everything you ever wanted to know about comparing electricity deals.