Understanding Your IL Electricity Supplier’s Terms of Service
While it’s important to be a smart shopper, reading and understanding terms of service is boring work. Plus, the legalese can leave you feeling confused and worried. But, if you want to avoid surprise fees or find the best electricity rate, reading them is essential. So grab that contract and follow along! Here’s why you should read your electricity supplier‘s terms of service.
Terms of Service: Fixed or Variable Rate?
One of the first things you need to understand is if you have a fixed rate plan or a variable rate plan. Variable rate plans only last for one month and don’t come with a contract. This makes them great for temporary arrangements while you wait for prices to fall. But their rates also can change each month. In contrast, fixed rate plans remain the same throughout their contract period.
Meanwhile, fixed rate plans can help you lock in a good rate from 12 to 36 months. And that rate won’t change for the duration of the plan.
Does Your IL Electricity Supplier Charge Any Fees?
Next, it’s time to read up on any fees. While providers can no longer charge early termination fees, there are other charges to check for.
- A monthly service fee.
- Late bill payment fees that can be automatically charged to your bank or credit card.
- If your credit rating falls, you may need to pay a deposit to your supplier.
Understanding fees will help you save money. For instance, you may find a lower rate with a different provider. But if they charge a monthly fee, you might not really be saving money by switching.
What Happens When Your Contract Ends?
Finally, you want to look for information on what happens when your contract ends.
First, check your plan term length. If your plan is a variable rate, your contract term typically lasts for one month. A fixed rate typically lasts anywhere from 3 months to 36 months. The longer the contract, the longer you have that electricity rate.
By law, suppliers must send you a notice 30 to 60 days before your contract expires. These say what your options are when your plan ends. Be sure you read these and contact your supplier with your decision. You can also shop for a new provider.
However, if you do nothing, some suppliers automatically assign you to their variable rate. Others will default you to your utility’s PTC rate. In either case, it could cost you much more.
Again, being proactive and shopping before your contract is over may save you money.
Find the Best Electricity Supplier with IL Energy Ratings
Reading your terms of service can really help you save money and a headache! Now that you know what kind of contract you have though, you may be thinking of looking for a better electricity rate. We have you covered. Compare plans, read reviews, and find the best plan for you all in one place. Visit https://www.ilenergyratings.com