Selecting the right energy plan can be a daunting task, especially with the many options available in Ohio's energy market. Whether you own or rent your home, finding the most cost-effective suitable energy plan can require careful consideration of many factors. By understanding what to look for in energy offers, you can make an informed decision that best suits your needs and helps you save money. To guide you through this process, here are the key factors you should consider when comparing energy offers:
Price per Unit
The price per unit is a critical factor to consider when comparing energy offers. For electricity, this is typically shown as dollars per kilowatt-hour ($/kWh), and for natural gas, it is shown as either dollars per thousand cubic feet ($/MCF) or dollars per hundred cubic feet ($/CCF). This figure represents the cost you will pay for each unit of energy you consume. Lower unit prices can lead to significant savings on your overall energy bill, so it's important to compare this across different suppliers. However, be aware that the lowest price per unit does not always mean the best deal. Other factors such as additional fees and rate stability can also play a crucial role.
Rate Type
Energy rates can be either fixed or variable. A fixed rate means the price per unit of energy will remain consistent throughout the duration of your contract. This can provide peace of mind protect you from market fluctuations. On the other hand, a variable rate can change based on market conditions, which might result in lower rates during certain periods but could also lead to higher rates unexpectedly. When considering rate type, think about your risk tolerance and budget stability. Fixed rates are generally better for those who prefer predictability in their monthly bills, while variable rates appeal to those who are comfortable with some level of uncertainty and are actively shopping around for potential savings.
Introductory Price
Some energy suppliers offer an introductory price, which is a lower rate available for a limited time at the start of the contract. While this can be attractive initially, it's essential to understand what the rate will be after the introductory period ends. Often, these rates will revert to higher standard rates, which could negate any initial savings. Be sure to inquire about the duration of the introductory price and what the ongoing rate will be. Understanding this transaction can help you avoid unpleasant surprises on your energy bills.
Term Length
The term length refers to the duration of your contract with your energy supplier. This can range from a few months to several years. It's important to understand how long you will be locked into an agreement, as this can impact your flexibility to switch to better offers in the future. Long-term contracts might offer more stable rates, but they also commit you to a particular supplier for an extended period. Conversely, shorter contracts provide more long-term flexibility, but may come with higher rates. Consider your long-term plans and how often you're willing to review and potentially switch suppliers.
Early Termination Fee
An early termination fee is a charge you may incur if you decide to switch energy suppliers before your contract term ends. This fee can be substantial and could offset any potential savings from switching to a cheaper supplier. Before signing a contract with an energy supplier, make sure to read the fine print regarding early termination fees. If you think there's a chance you might need to switch suppliers before the end of your contract, look for plans that have lower or no early termination fees. Being aware of these fees can help you avoid unexpected costs and make more flexible decisions regarding your energy plan.
Monthly Fee
In addition to price per unit, some energy supplier charge a fixed monthly fee. This fee is added to your bill regardless of how much energy you use. When comparing offers, consider whether a supplier charges a monthly fee and how it would affect your overall cost. A lower price per unit may seem attractive, but if it comes with a high monthly fee, it might not be the best deal overall. Make sure to calculate the total cost including any monthly fees to get a true comparison of energy offers.
How NOPEC is Different
When comparing energy offers on Apples to Apples, you may notice that NOPEC is not listed. This is because NOPEC is not a for-profit energy supplier, rather an aggregation made up of local governments. With NOPEC, you only pay for the energy you use. There are no additional monthly fees, switch fees, or termination fees. You can change rate types or leave the aggregation at any time without any extra cost. NOPEC hopes these straightforward rates and terms can help you simplify your decision-making process ad help you avoid unexpected costs. Call our 24/7 Customer Care Center at 855-667-3201 or visit nopec.org/checkrates to view NOPEC's pricing and learn more about our offers.
Categories: Consumer Questions | Aggregation
