Month-to-month – electricity gives a customer a lot of freedom when choosing their energy provider. Month-to-month rates are typically higher than a power contract and usually increase a great amount each month. However, month-to-month electricity rates give leeway and help you test out each power company and pick which one is right for you. If you do not want to be locked in at a certain rate, month-to-month rates vary to the cost of electricity when purchasing. As a result, if the price of electricity goes up or down, your bill will follow.
Benefits of Month-to-Month Electricity
- You can test out which energy provider is best for you..
- Chances of lowering your rate is high!
- You have the liberty of switching out earlier than having to sign a long power contract.
Disadvantages of Month-to-Month Electricity
- The exact amount for your which you are paying each month will not be reflected in your electricity bill.
- You have to constantly pick which provider you want to go with every month.
- There is a high risk of increasing your rate and possibly paying more than what is in your power contract.