There are commercial and residential rate plans. Most electricity companies offer electric service to both commercial business customers and residential electric customers.
There are different rate plans for each customer type and determining if you are a commercial or residential electric service customer is as simple as the designation on your electric meter.
There is not a whole lot you can do about your customer classification unless you want to call the electric utility and have them come out and do a study on if you qualify to be a business customer.
If you are not using more than 10,000 kWh a month you will actually save more money being classified as a residential customer on their rate plans.
The rate plans available to residential customers are generally fixed rates, variable rates, prepaid electricity rate plans, and sometimes a fixed rate with a fluctuating energy commodities adder.
Calling a fixed rate plan “fixed” when their is a variable adder is a bit of a scheme and those electricity companies offering this type of rate plan are simply trying to make their fixed electric rate plan look like it is cheap when it is really higher than everyone else.
Variable electric rate plans differ from energy provider to energy provider and change in price for different reasons after the first month. In some instances a variable electric rate plan may not even honor the advertised price but will change that price at the time the meter is actually switched and turned on in that customers name. For variable rate plans the general rule is, “buyer beware“.
Cheap electricity rate plans should be compared in a clear apples to apples comparison. You can use our rate chart at the top right to compare multiple electricity companies and rate plans and find a cheap electricity rate plan that best fits your situation.
A good rule of thumb is to go with a fixed rate plan and avoid variable electricity plans. Fixed = price assurance and predictability while variable price plans = ever changing prices and headaches for many a customer.
You may also call us at 1-800-971-4020.