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Fixed vs. Variable Electric Rates

Fixed vs. Variable

What’s a Fixed Rate?

An all inclusive price per kilowatt-hour will not change during the agreed upon term.

A fixed price will remain the same for a set period of time. This will give you certainty that your rate will not change during the term of the agreement. If the market prices rise you are protected by your locked in fixed price. However, if market prices fall you may have to wait until your contract expires to get a lower price.

  • You should read your terms and conditions to find out what happens after your term expires.
  • A fixed price will not change during the term of the agreed upon contract.
  • Provides stability, especially when you’re budgeting your electricity costs.

What’s a Variable Rate?

An all-inclusive per kilowatt-hour price that can change. If you select a variable rate, the rate may change with market conditions. If market prices increase, your rate may increase. If market prices drop, your rate may decrease.

  • If you follow energy market prices and adjust your electric usage accordingly you may save money versus a fixed rate.
  • Changing rates may make it more difficult to predict the amount of your monthly bill for budgeting purposes.
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“Just wanted to let management know that you have a very, very special employee on staff. She has been very professional, knowledgeable and patient with me as I tried to figure out the referral program. I have to say I have been with several different energy companies since the consumer has been able to select a retail supplier and Discount Power has been the best - outstanding customer service support!”

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