Typically, when you’re shopping for something, going with the lowest price or rate makes sense. There are other times, like say shopping for car insurance, where the lowest rate isn’t always the best or safest option. As the hundreds of commercials tell you, these cut-rate companies leave you hanging out to dry then when a problem occurs or tragedy strikes, like getting into an accident. When it comes to shopping your energy options, the same considerations should come into play. In this blog, we have included the 3 most common tricks 3rd party suppliers use to get you to sign up for their “low-cost” or “cheap-rate” options that end up costing you a lot of your hard earned money.
1. The “all inclusive fixed-rate” deal
You’ve signed a contract with a broker for an “all inclusive fixed-rate” energy package, and you expect that the price of your energy bill will be the same for the duration of the contract as it is now. Unfortunately the only thing that is fixed in these plans is the actual cost per unit, and you will see a fluctuation in your bill because of all the add-ons that aren’t included. The supply company can hit you with these excess charges, and you are not protected by these 3rd party suppliers. The worst part is that it can occur at any time, even up to a year after your contract expires! Some examples of these extra charges that you don’t really have any control over are congestion caused by high usage in the coverage area, and the over- or under-use charges, which happens when you use too much or too little of the agreed upon electricity. At UEA, we cover these extra costs for our customers!
2. “Green Energy” companies
We all want to do what is right for the environment, and green energy is the new buzz-word that you are hearing more and more about. Some people are paying more for energy thinking that they are being eco-friendly, when in reality they are paying for the same supply as their neighbor who hasn’t signed up with a “green energy” company. The good news is all energy supply companies use green energy, as the law requires a certain percentage of the energy sold to contain green energy sources.
There are numerous reasons this should be a red flag, especially if the quote seems to be much higher or much lower than some of the other quotes you’ve collected. These brokers are often working with a variable rate company whose rate fluctuates because of the different reasons we discussed in number 1. They bind you to these contracts, which usually see large swings, and when you try to escape this contract you have to pay their early termination fee.
If you have shopped for a new energy supplier, you have likely seen one or all of these common deceptions. If you are trapped in this situation, or want to begin shopping and need a good place to start, we at UEA are educators who put your best interest at the top of our priority list. As we have mentioned, we cover any extra costs to protect our clients, and you can rest easy knowing we have helped you avoid an expensive alternative. Simply use our contact page to get started.