By: Cheaper utility bills | posted in Reviews |
Date: July 7th, 2010
The fixed-rate gas and electricity are offered by 3rd party gas and electricity providers. These 3rd party gas and electricity providers purchase a large amount of gas and electricity from your local utility provider and resell them at fixed-rate.
This means you can sign up for a fixed-rate gas and electricity prices with the 3rd party providers. The price of your gas and electricity will not increase or decrease throughout the life of your contract.
Let’s take a look at some of the pros and cons of fixed-rate gas and electricity.
Fixed-rate gas and electricity pros
List of the advantages of fixed-rate gas and electricity
Fixed-rate gas and electricity cons
List of the disadvantages of fixed-rate gas and electricity
|The fixed-rate gas and electricity price will never increase or decrease.
It is easier to budget for your monthly gas and electricity bills.
You’re not affected by Smart Meters. The cost will be fixed.
|Fixed-rate gas and electricity prices do not guarantee any savings.
The only way you will save money is if you sign up with a fixed-rate plan and shortly after the price of gas and electricity increases.
There are high exiting fees.
Be in long-term contract, 1-5 years.
These 3rd party providers hire independent energy sale agents to sell their fixed-rate gas and electricity by going door-to-door. These independent energy sale agents only interests in selling the products.
The independent energy sale agents would knock on your door during the weekends, dinner times and disrupting your free time at home.
The independent energy sale agents are paid on commission base salary. They only get paid by the amount of people signing their contracts. This type of commission base salary cultivates misleading sale, false marketing, using fear tactics and fraud.
The 3rd party gas and electricity providers will charge you premium for their fixed-rate gas and electricity. They also have better insight and understanding of the market than the average consumers. They will always make their fixed-rate price high enough to make profit.
Fixed-rate gas and electricity contracts are hard to understand and are often one-sided. These 3rd party gas and electricity providers are able to terminate your contract at any time, but if you want to cancel your contract you will have to pay a fine or move to another location where you don’t pay utility.
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Info: This article is not a legal or professional advice or diagnosis, this is only my opinions. It represents my own personal point of view. This posting does not necessarily represent the points of view of my associates and friends. I do not endorse nor verify the accuracy, completeness or usefulness of any message posted on this site.