Fixed, Variable or Other?
The most common question I hear from potential customers is:
Do you recommend a fixed or variable rate?
It was never an easy question to answer because there are many variables to consider:
What level of knowledge does the customer have in the energy market place?
Can they tolerate a few months with bills higher than they budgeted for?
Do you like knowing exactly what your energy rate will be each month?
Do you believe that market rates (variable rates) will do better in the long run?
Do they experience with either fixed or variable rates and what did they think?
The long and short of it comes down to finding an option that will provide a level of comfort for the customer. So there is no one answer for everyone. Or is there?
For the fact that we do get this question a lot, we have created a product that makes answering this question easy - you don't have to choose. You get the benefits of each rate in our FUSION program.
For the customer who wishes to float with the market, FUSION allows you to take advantage of low market rates. But when the market changes and rates begin the climb, FUSION caps the rate you pay at $0.067 kWh. This means you will never pay more than $0.067 kWh.
If a customer was on our FUSION rate for 2019, the average electricity rate they would have paid was around $0.06 kWh - which is considerably less than the cap rate of $0.067 kWh. That translates into $437 annually for the energy portion of their bill.
When FUSION is compared to the market place, it compares favourably. As reported by the Utilities Consumer Advocate (UCA), the average fixed rate for the market was of $0.0697 kWh. That would make the energy only portion of a customer's bill greater than $500. And, if you were on the regulated rate option, you would have paid $493, on average.
With FUSION, it is a simple answer that comes with some great savings for our customers. Sign up today with ACE!