Find Best Electric Rates
No one likes to waste money on electricity. Especially when they could be saving money by shopping for the best electricity plans in town. But finding the cheapest energy isn’t always easy. So this quick guide will help you shop for the best electric rates in Massachusetts .
Consider Basic Utility Service Rates
The best place to start shopping is by checking out your local utility. Eversource and NationalGrid both offer basic service rates for the supply portion of your bill. For example, right now Eversource charges 15.348 cents per kilowatt-hour (kWh) until December 31, 2022. And NationalGrid is charging 11.491 cents per kWh until October 31, 2022.
Write these rates down, you’ll need them later.
Compare Massachusetts Electric Rates
Now with the basic service rates written down, it’s time to start checking out 3rd party electric rates. Usually you can get away with choosing plans with lower rates than your local utility. But here are some other factors to consider before you choose to switch to one of the state’s electricity providers.
Fixed or Variable Electric Rates
As you shop electric rates, you’ll come across the terms “fixed-rate” and “variable-rate”. Generally speaking, fixed-rate terms are better for price stability and predictable spending. Using Eversource, you’ll always know that you’ll pay an electricity supply rate of 15.348 cents per kWh. With variable rates, you may end up being surprised by sudden rate hikes.
Also, fixed-rates won’t be changed by external factors that can cause rate hikes. For example, consider that natural gas makes up about 38% of US electricity generation. For electric generators serving New Englanders, any time one the three main natural gas pipelines slows down or is constrained, prices for natural gas shoot up. And so do electricity rates.
Electric Rates Contract Length
Contract length is another factor you’ll want to consider. Most 3rd party fixed-rate plans can vary from a few months to 24 months or more. But what about short-term contracts? Are they better than long-term contracts? That depends.
Short-term contracts (Less than 12 months) are a great way to try out a company’s services. You an enjoy savings for a few months and see if you like how a company handles any issues or outages you might have. But rates tend to be a little higher on average. meanwhile, long-term contracts (24 months or more) are best if you can secure a good cheap rate. They are also great if you prefer to shop less often or have found a rock star company that treats you great!
Early Termination Fees
Smart energy shopping is often an active process. Most energy customers will switch or cancel plans to always keep the best possible rates. But high early termination fees (ETFs) can make this strategy cost more than it’s worth. So if possible, choose rates with low or no ETFs.
Electric Plan Benefits
Finally, consider any extra benefits that an energy company offers. Energy companies often offer useful extras to add value to their plans. These can be shopping or travel discounts, rebate offers, or renewable energy to reduce your carbon footprint. Sometimes these extras can make slightly more expensive plans the better bargain.
Choose Best Massachusetts Electric Rates
Shopping for better rates is never easy. But if you’re careful and keep an eye open for opportunities you can save money and enjoy stable pricing and potential benefits.
You can learn more about other ways of saving money and energy by comparing rates and plans at https://www.maenergyratings.com.