Because of air conditioning, summer means peak demand and peak prices for electricity. With autumn around the corner, does that mean prices are now going to fall? And is it then a good or bad time to shop for electricity? Read on for our forecast
The Rate Roller Coaster
Summer brings a double whammy for your electric bill: you consume the most to keep your house cool and the rates are the highest, especially if you are still on your utility’s service and haven’t locked in a lower rate. Not to worry, Fall can be a great time to compare options and shop around for a fixed price before the utility rate roller coaster takes you on the next ride: winter.
At ClearlyEnergy, we go to great lengths to provide you with apples-to-apples comparison of rates. That means that when comparing one-year offers, we show you a one-year utility benchmark. It takes into account what is known of utility rates and uses a proprietary forecast beyond that. What we don’t do is selectively pick the highest utility rate of the year as the benchmark to make your savings look larger. Six-month offers are compared to a six-month benchmark; two-year offers to … you get the idea. If you select a variable rate which can change month-to-month, then keep an eye on your bill and make sure you can switch to a fixed rate at no fee when you see the right opportunity.
It’s Fall, Are Prices Going to Fall?
Our forecast predicts retail electricity offer prices to start falling with the leaves. The trend observed in the wholesale electricity market, the place where retail providers go to buy the power they sell you, has been downhill for several months now. With summer behind them, we expect that retail providers will start adjusting their prices downwards. Which means it’s a great time to look around for a new electric rate, but plan on making your choice before the trees are bare.
For your Maryland Fall: Counting the Savings forecast, click here; for the District of Columbia's outlook, click here and New Yorkers, click here
By Veronique Bugnion, co-Founder ClearlyEnergy. You can find me on Google+