Pay attention to advertising from providers. What provider incentives are they offering?
REPs know that many consumers will jump at the chance for these plans. Don’t be fooled.
Free nights and weekends sounds great. But are they really free? Nights and weekends are considered “off-peak” times of day. REPs can afford for you to use electricity and not pay for it because they charge a higher rate during the “on-peak” times of day. Many times the “on-peak” rate is 17¢ per kilowatt-hour or more!
Average billing can keep your monthly bill consistent. What does this plan cost you? The amount of energy you use goes up in the summer (“peak months”) with the temperature. Your HVAC system has to run longer and more often to keep the air temperature down. During the spring and fall (“shoulder months”), it doesn’t run as much. To keep your bills consistent, REPs retain a portion of the money you pay in the “shoulder months” to help pay for electricity for the “peak months”.
Gift cards and other incentives like bill credits and signed footballs are similar to average billing. REPs charge a higher rate for your electricity and are able to draw interest on the excess. You overpay for electricity, the REPs make money on interest, and then give you an “incentive”.
All of these plans have one thing in common:
Let SK Energy show you the low rates you qualify for and easily save hundreds of dollars per year.