How to make signing up with electricity less risky

by Donny on January 17, 2011

Life is about taking risks, but it’s also best to avoid risks whenever possible.

That’s why we want to help you find the most affordable electricity rates and suppliers possible without any risks attached.

Going with what appears to be the cheapest rate can be a risk because you don’t know if that company will stand by it. There’s no way to know whether or not there will be hidden fees.

For example; if you sign up for a variable rate because it showed the best price, you might be happy at first with your decision as it appeared to be a smart one, but a month or two later, you might find out it wasn’t as smart of a decision as you may have thought.

Fixed rates are usually the way to go because they’re more consistent than variable rates.

There could be a number of different things to cause rates to increase and because of that, below are a few risks to keep in mind:

  • Market Risk- In times when gas and electricity are at record highs, or after a major even that may increase the prices even  more, energy suppliers will often try to use it to their advantage by charging the customer a ridiculous amount based on what the rest of the market competition is doing.
  • Credit Risk- This is especially unjust to you if you have good credit. What happens here is you get charged more by the energy provider who’s trying to make up for the fact that other consumers aren’t paying enough because they have bad credit.
  • Operational Risk– Again this is extremely unfortunate when it happens. This is where electricity suppliers’ software or something else goes wrong. Whether it’s poor calculations or the inability to contact the consumers, you the customer may still get hit hard because of mistake made by the electricity provider.
  • Quality Risk– This can be misleading and might seem like false advertising. This happens when a company advertises a product or service that could have better quality if they put more effort into it, but instead they sacrifice the quality.
  • Model Risk– Many companies have pricing models but the risk is that they’re not always accurate. Some may tell you too low or too high, and because you can’t rely on them, it’s pretty risky to try.
  • Political Regulation Risk– With many states becoming deregulated, the government has less control as to who can provide power in certain areas. However, on the flip side, government officials can require the providers to add fees and increase rates other ways.

We want to help make things as less risky and as less confusing as possible.

You can use our site to compare, shop and choose your own electric rate and supplier, with no strings, no risks attached.

If you still have any questions, comments or concerns, please feel free to give us a call anytime at 1-800-971-4020, and one of our expert energy consultants will be happy to help you out with any of your electricity needs.

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