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Questions to Ask When Considering Changing Energy Suppliers
September 14, 2020
Shopping for your business’ energy supply can be overwhelming. There are many energy suppliers that offer prices that can seem too good to be true, and oftentimes they are. Read our blog for a few questions to consider if you are thinking of switching to another supplier.
- Is it a variable rate? One of the benefits of partnering with an energy supplier is that they can offer contracts with a fixed rate, however not all of them are. Make sure to read the fine print to ensure your energy rate is locked in for the duration of your contract.
- Is it just an introductory rate? Sometimes suppliers will list a low price to catch shoppers’ attention. This could be an introductory rate that only lasts a few months before your rate increases for the remainder of your contract.
- Is the term length of the contract right for you? Suppliers offer a variety of term lengths – whether you’d like something long term that you don’t have to think about or if you’d prefer to keep your options open by selecting a shorter contract. Keep in mind that sometimes suppliers offer shorter contract terms that end right before summer when historically there’s a greater chance of pricing volatility due to weather. Summer is also the time when new capacity rates take effect. These rates are based on annual energy auctions and are used in combination with the amount of energy your business uses to account for up to forty percent of your generation costs. Entering into a contract that ends right before the capacity rates change could provide you with a low cost of energy in the short term, but ultimately end with sticker shock for any renewal, new agreement or reverting to the utility default rate.
We know that choosing a supplier can be a confusing process. AEP Energy’s Small Business Energy Consultants are here to help! AEP Energy doesn’t offer introductory rates and our consultants will be straightforward with you about term lengths and fixed versus variable rates to ensure the best option for your business.
If you’re already an AEP Energy customer and are interested in renewing with an energy supplier you can trust, contact our Account Management team at 1-888-924-7111. If you’d like to get started with AEP Energy, contact our Small Business Energy Consultants at 1-877-648-1936.