The need for electricity for the residential building differs from one that of a commercial building. Commercial buildings need more electricity in comparison to residential ones. Every business is looking for an energy supplier that has the best commercial energy supply plans. That will fulfill energy needs in the amount that fits the budget.
So in this article, you will learn about the rates and different plans offered by commercial energy suppliers. This will help you to decide on a good plan.
Rates of the Commercial Energy Supply Plans
The rates of the commercial electric supply keep changing. Sometimes it goes up, and sometimes it goes low. For August, on average, the average commercial electric rates and the lowest rates are given below.
1) For 6 months, the average rate is 7.63¢/kWh, and the lowest rate is 5.11¢/kWh.
2) For 12 months duration: the average rate is 7.21¢/kWh, and the lowest rate is 4.83 ¢/kWh.
3) For 24 months, the average commercial electric rate is 6.87¢/kWh, and the lowest rate is 4.56¢ /kWh.
4) For 36 months, the average commercial electric rate is 6.67¢/kWh, and the lowest rate is 4.45¢/kWh.
Types of Commercial Energy Supply Plans
There are different types of energy plans that the suppliers offer. It's essential to know these plans to opt-out of the price of your commercial place. Each plan has its pros and cons.
Before signing long-term plans with suppliers, It's crucial to analyze the pros and cons. Suppliers offer 2 different commercial energy supply plans. One is variable, and the other is fixed. Let's understand these plans in detail one by one.
1) Fixed-rate
Fixed means that it does not change. So as a fixed-rate plan is also the plan that doesn't change. The amount or rate at which you sign the contract is the amount that will remain constant till the end of the period. The amount of the standard electricity might change, but you will have to pay the amount in your contract.
Though there might be any situation such as drastic weather, hurricanes, or market volatility, you will have to pay the same amount. In some cases, fixed-rate plans allow you to have prepaid electricity.
Generally, fixed-rate plans are signed up for 6months or 12 months, or 36 months. In this period, you will be bound to the contract. The advantage of this plan is that even if there is an increase in rates in the market, you will have to pay less according to the contract.
On the other hand, if the market price falls, it will be a disadvantage to you. One more advantage of this plan is that you can manage your overall budget vet well with the predictable monthly bill.
2) Variable-rate Plan
A variable-rate plan means a plan that doesn't have a constant rate. The rates keep on changing every month as there are changes in the market. Along with the variable market prices, the retailer providing you electricity might also consider other factors for rate finalizing. Such as temperature, increase demand, etc.
Variable-rate energy plans are more complicated. Some of them may start at lower rates and then can rise to a higher variable rate. Thus it's very crucial to read the contract before signing it carefully. You can save the amount when the market price goes low.
This is the main advantage of a variable rate plan. You also have the flexibility to change the supplier in variable rate plans. The disadvantage of a plan is that you will have to pay more when the market prices increase.
What more to See While Signing Contracts with Suppliers?
Along with these two plans, the other one is another thing that you consider before selecting the commercial energy supplier for your commercial area. Some of the retailers allow you to have prepaid electricity plans for commercial areas. You can pay for the month or six months beforehand. According to the retailer's rates and market price, you will have to pay at the start for specific kilowatts. This allows you to manage your budget very well.
Final Words
The information in this article lets you better understand the best commercial energy plans and rates. May it be fixed payor prepaid electricity plan analyze the pros and cons of the all and then choose one for yourself. Different suppliers may have their set of regulations, so also read contracts very well before choosing the best commercial energy supply plan.
Also Read: How to find the best electricity providers in Texas?