The Anatomy of a Variable Rate Plan

By energy_linguist, June 17, 2009, FAQs

Following up on the blog post last week, The Anatomy of a Fixed Rate Plan, this week I'm focusing on variable rates and how to best assess whether this option is the ideal electricity plan for you. Disclaimer: Several factors determine whether you should go with a fixed vs. variable rate, namely monthly budget, the area you reside in and the available electricity providers.

A variable rate is advantageous for different reasons:

  • Allows you to capture the lower rates when demand or other factors contribute to a price drop.
  • No cancellation fees (generally) if you decide to switch to another plan or electricity provider.
  • Each time your company lowers rates, you reap the benefits.

If long-term price protection is more important, than considering a fixed rate may be your best option. Keep in mind that variable rates can fluctuate according to the electricity and natural gas markets, so the timing of your switch is equally important as well.

Cost benefits and flexibility are definite pluses when it comes to variable rate plans. Should you find that rates are falling and you can save immediately by switching, then it's worth serious consideration.

Check out the new Super Saver plan from Bounce Energy as an example of what incentives and features you can get with a variable rate plan.

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  1. rate plan says:

    […] provide benefits for use of an out of network provider, however at a significantly reduced rate. …Bounce Energy Blog The Anatomy of a Variable Rate PlanThe Anatomy of a Variable Rate Plan. June 17, 2009 FAQs. Following up on the blog post last week, […]