Finding the perfect electricity plan with a good rate can be a time-consuming and daunting task. So, once you’ve signed up for a plan that meets your needs, it’s natural to breathe a sigh of relief and forget all about it until the contract expiration date. However, forgetting to renew your electricity plan can cost you dearly, undoing all the hard work you put in to find a good rate in the previous term. In this blog post, we’ll discuss the importance of renewing your electricity plan and what you can do to avoid costly mistakes.
Electricity providers often count on your forgetfulness
Electricity providers are well aware that many consumers forget to renew their plans after the contract expires, and they often take advantage of this opportunity to quietly roll you into a month-to-month product at a much higher rate. This is commonly known as a "rollover" or "default" rate, which is often much higher than your previous plan's rate. Therefore, it's important to keep track of your contract expiration date and renew or switch plans before then.
Re-shop or renew before your contract expires
If you're managing your own electricity providers, it's crucial to re-shop or renew your plan before the contract expiration date. By law, you can switch providers up to 14 days before your contract expiration date without incurring an early termination fee. This gives you ample time to research and compare different plans and providers to find the best deal for you.
The consequences of not renewing your plan
If you forget to renew your electricity plan, your provider may automatically switch you to a new plan at a much higher rate. This can result in a significant increase in your electricity bills, and you may end up paying more than you anticipated. Additionally, if you try to switch providers after the contract expiration date, you may be subject to early termination fees or other penalties.
In conclusion, renewing your electricity plan is essential to avoid costly mistakes and ensure that you're getting the best value for your money. Remember to keep track of your contract expiration date, research and compare different plans and providers, and renew or switch your plan before it expires. By taking these simple steps, you can save money on your electricity bills and enjoy uninterrupted service from your provider.