Many REPs, but not all, offer Month to Month variable rate plan products. For the consumer, Joe Homeowner, these plans carry high risk. Although termed Month to Month, the rate may be changed at the whim of the REP any amount it chooses at any time after the introductory month without advance notice to the customer. In contrast, fixed rate plans guarantee the same rate for the term of the contract. They are the safest rate plans.
It is believed the majority of homeowners that are on variable rate plans....and many are there without awareness....had that plan chosen by default action. In the circumstance when fixed term contracts have expired and the customer took no action to switch providers or select a new plan with the same provider, that account may have reverted to a variable rate plan and remained there without recognition by the customer. However, some customers chose a low price promotional variable rate plan when initially switching to a REP and have allowed the account to remain status quo despite rate increases to levels higher than those on fixed rate plan products.
Our monthly electric bills now show what plan and term the customer is on. Review your bill to determine your status and act as appropriate. In addition, it is suggested all electric account holders be more vigilent. Finally, there are no early cancellation fees connected to variable rate plans.
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