Most of us spend our time inside our homes due to the pandemic. This means excessive usage of electricity. Electricity use with unpredictable market rates, especially if you haven’t signed for a fixed-rate plan, will cause your bill to sky-rocket.
In an attempt to save money, you started comparing rates and plans to see a more affordable option for you. With so many energy providers to choose from that offer appealing deals, shopping for an energy plan and rate can be very overwhelming. Others make haste decisions in switching energy providers, and end up regretting after.
Comparing and switching energy providers will help you save money if, and only if, you do it right. Switching energy providers is easy, but if you do not know what you’re doing and haven’t done enough research yet, then you’ll end up spending more instead of saving money. We have listed these mistakes you must avoid helping you prevent making a regrettable decision.
1. Switching Without Thinking
Deregulation has brought people choices, lots of choices. With so many options, it became so overwhelming that most end up making a snap decision to end the burden of being overwhelmed without weighing the pros and cons of their action that usually ends with regret.
To avoid being overwhelmed, choose at least three or five providers you think are best and narrow it down to the best option for your household. It is recommended to spend a bit more time comparing the plans, rates, and contract options offered by energy providers.
For instance, if you’re living in a deregulated state, tested and proven providers such as Eligo can save up to 20% of your electricity bills by creating customized energy plans according to your household needs.
2. Not Understanding The Energy Tariff Structure
Before shortlisting your top three to five energy providers, you have to know more about their plans. Only when you know and understand the plans they offer will it be easy for you to decide if this energy provider can be a part of your list.
Companies offer many tariff structures, and some even provide customized plans, but the two main types are the fixed-rate plan and variable-rate plan. A fixed-rate energy plan offers a predictable amount to pay for a certain amount of time and makes budgeting easier.
While a variable-rate energy plan is unpredictable because the rate can go up and down depending on the market, you can save the most money if you can take advantage of the declining electricity prices. There is a lot of plan choice under each of these two main types, and you can choose whatever suits your needs.
3. Not Reading The Contract
Most of us are guilty of this mistake, not reading the contract. When switching energy providers, they will require you to sign a contract. It is vital to take the time to read and understand what you agree to even though it is a tedious task that requires hours of your time. Reading and understanding the agreement will help you know if this provider is the best option for you.
In a contract, you will be able to know about hidden charges that you will have to bear that can help you calculate the exact cost or value of the plan. If you have not read your contract with your current energy provider, you should read it as well before switching to a new provider.
This way, you will know about fees you will have to shoulder before ending your contract, especially if your contract is not yet due for renewal. If your contract has not yet expired, some might require you to pay termination fees or exit fees, and it is usually written in your contract. Also, note that termination fees vary from different providers, and some might charge higher fees than others.
4. Ignoring Past Dues
Past dues are something that many customers overlook. If you had unpaid bills, you must resolve them before switching energy providers, or your application to change energy providers may be denied. It would be best to settle even age-old dues with other providers.
That is why you must check your billing history to check for age-old past dues because there are cases that others forget about these and only come to know about such hindrances when they attempt to change energy providers. Make sure to settle everything so you wouldn’t have problems when switching providers.
5. Neglecting Reviews
Another thing many people neglect is reading reviews online because it can feel unnecessary for some. But reading online reviews is actually vital in your hunt for energy providers. Reading feedback on certain providers’ customer service from actual consumers can help you narrow down your lists of top energy providers.
Once you can find an energy provider with excellent reviews, you can then add them to your list or sign a contract with them right away. If you found an energy provider with poor reviews, it is best to avoid them so you can avoid making a regrettable decision and can save more.
You need to understand that to save more; you need to be meticulous with every decision you make, including your energy provider’s choices. We have listed these common mistakes so you can avoid them in your hunt for the best energy provider and help you spend less rather than more.