Types of Electricity Contracts in New York

Shopping for electricity can be a little stressful, especially if you are not sure what you are looking for. When you are searching, you might also be unsure of what you are looking at. You can check out electric suppliers in NY online. However, you might be confused by the different contract types on offer. You have a great choice of energy service companies in New York City and throughout New York state. However, you need to be able to understand what is available to you before you can choose the right one. Services can be offered at a fixed or variable rate. They may also offer additional products and services. You might also see plans with introductory rates for new customers. Use this guide to figure out what's what.

Fixed-rate Contracts

A fixed-rate electricity plan has a contract of a set length. The length is usually somewhere between three months and 36 months (three years). During this time, the electricity rates are set and can't go either up or down. There are both advantages and disadvantages to using this type of contract. Firstly, it protects you from any rises in rates that other consumers might experience. However, on the other side of the coin, you also won't benefit from any drops in prices. If you are locked into a fixed-rate contract for a couple of years, it could be a drawback when energy prices are more affordable.

Variable-rate Contracts

If you choose a variable-rate contract, it means that your rates will rise and fall along with the cost of electricity. It can change each month, with the contract renewing monthly or perhaps being up to a year long. Choosing a variable-rate plan means that your expenses can differ over the year. When energy prices are low in spring and fall, you could benefit from some savings. However, the use of more lighting, heating, and air-conditioning in winter and summer can mean paying more. It can balance out, though, so you still have a manageable expense across the year. It does mean that you may have to budget more smartly throughout the year.

Introductory Offers

Some electricity supply contracts may offer you an introductory offer. These can be attractive, as they give you a good deal when you first switch your energy supplier. However, it's important to be wary of these offers. The introductory rate is only for a short time. Once the initial period is over, your rates could skyrocket.

Renewable Plans

Another contract type you might consider is a renewable plan. These make use of green energy to power your home. You can have all your electricity come from renewable sources. These include hydropower, solar energy, or wind power. The cost of a renewable plan is usually higher than those that use traditional energy sources. However, the benefit is that it is much kinder to the planet, which is important to many consumers.

It's important to understand the different contract types before you choose an electricity supplier. Make sure you know which is best for your household before making a decision.