The deregulation of the energy sector offers you competitive prices from many service providers. It is also quick to pick your best supplier with comparison tools such as Ambit energy rates. Thus, you might be tempted to jump for the lowest rates in the market and make costly mistakes. However, consider these facts before switching electricity companies.
When is Your Contract Expiring?
The Electricity Facts Label (EFL) shows your contract length, the termination fees, and the energy rates for various levels. You can also use online resources to know the exit charge. Just provide the necessary details such as your current provider, address, postcode, tariff, and annual usage. The quote is instant and can help you decide whether terminating your contract is cost-saving or not.
Wait until you get a notice from your supplier on your contract expiry if the early termination fees are high. The statement comes 42 to 49 days before the contract ends. This period is the right time to switch your providers.
You may still want to switch suppliers but cannot fund the exit charges. Talk to your new company and ask for assistance with these fees. Your new provider might also waive upfront costs.
The Best Time to Switch Power Companies
So, when is the right time to change plans? This is the best time to switch:
- At the end of winter/early spring: Seasons and weather factors influence electricity bills. For example, summer and winter have higher prices than other seasons. Enroll when the demand is low to get the best prices. If your contract ends when the prices are high, register a partial plan to cover till early spring when you can register for the long term. If you live in states like Texas, an electricity plan’s effective electricity rate can change depending on how much electricity you use each month. It’s important to know your usage and take note of the different factors that affect your effective electricity rate. You can compare Texas electricity companies in order to secure a lower rate than what your neighbors are paying.
- Before your contract expires: A breach of contract attracts high termination charges. The best practice is to secure a new plan a few weeks before the old deal ends. The switch usually takes 14 days. So, factor in this period.
- When prices are about to soar: News reports announce an expected rise in energy costs. You may also observe a rise in tariffs from one company. This trend often follows with the other providers. This is the right time for a fixed long-term rate.
- When moving out: Your new house might have different energy needs from the previous one. You may also move to a location where your current provider does not operate. Just let your company know your intentions in advance, and they will waive the termination fees.
- When dissatisfied with your provider: Your switching decision may be more than looking for cheap rates. You deserve good customer service; change to professional companies. Remember to check your potential supplier’s credibility through the Better Business Bureau.
- When you clear debt: A debt older than 28 days and penalties tie you to a supplier. So, clear it before leaving.
Read More: 5 Energy Saving Tips For Your Home
What Happens When You Change Your Mind?
It is usual for clients to rescind their decisions. The law requires the supplier to offer a 14-day cooling-off period. You can safely switch to another company during this period. Several service providers offer competitive prices; you have options. For example, you may use online resources such as Ambit energy rates to get the best deal. Remember, you can switch your supplier when the rates are low, your contract nears the end, or moving to a new home. Ensure that you do not have energy debts or penalties.