Fixed Price or Variable Price Plan; Which plan best fits your needs?

When shopping for a new energy plan, you may see several different terms and plans to choose from. Most commonly it is a Variable or Fixed Price Plan. How do you know which plan is best for you?  First, we need to understand the difference between the plans.

Defining the Plans

Fixed Price Plan- (for the ‘Planners’) A fixed-price electricity plan allows you to pay the same electric price per kilowatt-hour(kWh) for the length of the plan, even when the market prices fluctuate. This plan normally involves a contract for the length of your choice and can vary in length.

Fixed energy plans offer you a chance to compare energy prices in your home and business energy market. You then choose an energy price and plan that works best for you. When you choose a fixed price option your price never changes for the duration that you choose. You enjoy the same prices for your electricity or natural gas service no matter what the energy markets do or drastic shifts in cold or hot weather.

Variable Price Plan- (for the ‘Risk-takers’) A variable price plan allows your prices to fluctuate based on wholesale prices. When the price of energy goes down, you pay less, but your prices will increase if the prices go up. Variable price contracts have month-to-month terms, so there are no fees for terminating the contract providing flexibility for you.   

Choose from a wide range of energy options in almost every market that XOOM Energy serves. When you have the options for both home and commercial service, you get the specific prices, terms, and renewable energy choices that best fit you.

How to see the plans available to you

Plan availability depends on your location. To compare plans offered in your area visit xoomenergy.com. 

The take away.

The key to making this choice will often depend on your budget and lifestyle. What’s really at stake in this decision, though, is having a payment plan that most suits your financial needs.

When choosing a fixed price over a variable price, you are trading flexibility and freedom for reliability and minimized risk. By considering this decision alongside your financial situation, your future plans, and your budgeting requirements, you’ll be able to choose a plan that best meets your household’s needs.