Differences between variable rate and fixed rate

You can buy natural gas & electricity for your home or business as variable rate, fixed-rate or even prepaid.

Fixed rate – The fixed rate gas & electricity are sold by energy retailers. The fixed rate is a gamble because no one knows if the price of natural gas or electricity will go up or down. However, the fix rate contract gives you the benefit of knowing your gas and electricity costs are set for that period. If price rise above your contract price, you benefit.

Also fixed rate are unregulated, which mean the energy retailers can charge whatever they want for your natural gas and electricity.

Variable rate – The variable rate for natural gas and electricity are regulated. It comes from your utility supplier, such as Enbridge in Ontario or Nicor in Illinois. They can only profit from the delivery cost. The price of variable rate is determined by supply and demand, just like the fluctuation price on gasoline we use to fuel our cars.

Amherstburg resident Pearl Gorgerat and her husband Gord want to warn area residents to be careful when they sign with energy management companies. Gorgerat estimates they lose $40-50 each month because of the contract they signed in 2004 and mistakenly renewed recently.

What is Superior Energy?

Superior Energy is natural gas and electricity supplier operating in Ontario, British Columbia and Quebec. Superior Energy offers “Price Protection Plan”, or another word a fixed-rate gas and electricity plan. It is an unregulated energy retailer, which means it can charge you whatever they want for natural gas and electricity.

Have you heard of a company called Momentis by Just Energy? It is currently operating in London, Barrie, Toronto, Kingston, Peterborough, Ottawa and elsewhere in Canada. Also, in USA, Momentis is opening meetings in cities like New York and Buffalo.

Momentis is the sale arm of Just Energy. Just Energy sells fixed-rate gas and electricity prices, operating in both Canada and US. Just Energy was formerly known as U.S Energy Savings.

Just Energy had been charged with all sort of misleading sales, misleading marketing and including consumer fraud charges by the Attorney General of Illinois in 2008, Read more at www.illinoisattorneygeneral.gov: Madigan files suit against U.S. Energy Savings Corp (now operating as Just Energy).

According to Citizens Utility Board, people who sign-up with MX Energy fixed-rate or variable gas and electricity prices lost an average of $834.12 with 243 plans while an average savings of $197.58 with 6 plans. That’s 98% of 249 plans lost money by switching to MX Energy gas and electricity prices. Read more at www.citizensutilityboard.org: IGS Energy

Will you save money with IGS Energy fixed-rate or variable gas prices? The answer is NO, according to Citizens Utility Board, people who sign-up with IGS Energy fixed-rate or variable gas prices lost an average of $150.43 dollars. Read more at www.citizensutilityboard.org: IGS Energy

TXU Energy is an electricity retailer providing services to more than 2.2 million electricity customers in Texas. It is considered to be one of the biggest electricity providers in Texas. TXU Energy offers variety electricity products, allowing both its residential and business customers to choose options that best meet their needs.

Texas Electric Choice Customer Complaint Statistics

TXU Energy is rated the worst with the most complaints out of all Texas electricity providers according to Texas Electric Choice Customer Complaint Statistics from December 31, 2009 to June 30, 2010. With over 1600 consumers complaints with in six months. See the full statistics here: Texas Electric Choice Customer Complaint Statistics.

dPi Energy is an independent unregulated electricity provider for homes and business electricity supplier in Texas. Dpi Energy offers prepaid electricity prices. Before you decide to switch electricity suppliers, read some of the reviews. More info at www.dpienergy.com

Complaints and reviews

From December 2009 to June 2010, DPI ENERGY, LLC is rank 7th for the highest customer complaints with 132 complaints base on Texas Electric Choice customer complaint statistics.

Also, DPI Energy is rated “Highest complaint rate” along with Amigo Energy, Dynowatt, and Freedom Power. Source: Public Utility Commission.

“Dpi Energy is a scam company. I have reported them to the PUC in Austin. They take advantage of people by first lying and getting a start up fee and the sending bills after 10 days. I paid $129 to get started and got a bill of $287.65, 10 days later. I did not pay Dpi Energy the rip off scammers. I just went and put a deposit and went with a legitimate gas and electricity supplier.” Greg of Houston, TX June 16, 2010

On June, 17 2010, The Ontario Energy Board fine Summit Energy $495,000 for what it calls unfair practices in the sale of natural gas and electricity contracts.

Five Summit Energy agents made deceptive statements to consumers or failed to deliver written copies of the gas and electricity contracts within 40 days of signing, as required by law, the board said – pinpointing 28 incidents of such behavior. Read more at www.thestar.com Energy seller faces fine for misleading sales claims

Gerry Haggarty is the president of Summit Energy made this statement after the OEB charges: implemented of series of measures which included the suspension of all five sales agents noted in the OEB notice. Read it all at www.newswire.ca Summit Energy takes action to assist consumers

Spark Energy is an independent unregulated natural gas and electricity provider to homes and businesses across America. Spark Energy offers variable and fixed rate natural gas and electricity plans.

The above picture is an analysis of Spark Energy’s variable and fixed natural gas and electricity plans offered in NICOR territory with a total average loss of $405.19 with 132 plans. The best bet may be to stick with your local regulated gas company – Nicor. Read more at www.citizensutilityboard.org: Spark Energy natural gas and electricity price analysis

See the full fixed-rate gas analysis at www.citizensutilityboard.org WPS Energy natural gas and electricity price analysis

Wondering if the fixed-rate gas and electricity with WPS Energy save you money or are you throwing away your money? Well, as you can see from the statistic above show all 11 fixed-rate gas and electricity plans lost money of a total average of $448.79 when compare to the variable rate of natural gas.

WPS Energy is an unregulated gas and electricity provider for residential, business and farms. WPS Energy offers fixed-rate or variable gas and electricity rates in Northern Illinois.