When energy deregulation was introduced, it became possible to switch electricity companies whenever you want in order to keep your expenses low. While changing plans and providers is a great way to pay the lowest rates possible, you should only do this if you know the right time to switch. The reason is simple: the prices don’t remain the same through different seasons of the year. So, when should you make a move?
The Best Time to Switch Electricity Companies
Before making a switch, you have to ensure that you‘ll get value for your money. You might be switching only to find that you are breaking a relationship that doesn’t need any fixing. To be confident you’re switching your electricity provider at the right time, Electricity Monster advices you to consider the following:
Spring and Fall
If you’re shopping around for a new provider with great tariffs, one of the best times is during fall and spring due to seasonal demand shifts. Avoid making a switch during summer and winter because in times of extreme heat and cold, people rely more on power for cooling and heating respectively. This means that demand goes high during summer and winter, translating into higher tariffs.
- Beware of the fact that some companies may lower their rates during low-demand seasons such as fall and spring to attract new sign-ups, but compensate for this in the summer and winter.
- Try to pinpoint the specific months when rates are lower in your state to make the switch. For example, if you are based in Texas, any time between December and March is an excellent time to change because these are the lowest months over there.
When was your last switch?
If you have never switched electricity companies before, there’s a good probability you have been paying more money for your energy needs for a long time. Why? Because it is common for companies to offer you lower rates for the first few months in the first year before resetting to the standard (maybe higher rates) thereafter.
Companies that switched in at least the last 12 months are advised to go back and check market rates afresh. You are likely going to get better rates with periodical comparisons.
Is your current deal ending?
You are definitely on some energy plan and the best time to shop around and switch to a new deal is a few weeks before your contract expires. If you delay, your provider may switch you to a standard tariff, which is usually expensive.
Avoid one-time offers. There is definitely no point in switching your electricity companies if they only a one-time offer in that month. The consequence of this is that the subsequent months may be more expensive, meaning that your electricity bill may be higher for the entire year in general.
Something else to consider is that you should avoid switching electricity companies if you’re getting a short-term contract. These mean that you may not have long-term stability and your business will be shaky in the long run.
Another important factor to consider, which actually relates to stability, is fixed rates. Regardless of the time of the year, some electricity providers will give you fixed rates that may insulate you from the shifts in prices due to seasonal demands and supply forces.