FAQ

Both fixed and variable rates and contracts have their advantages and disadvantages.

A Variable Rate is typically a month to month contract.  The “variable” means the rate can change each month.  This can be very good if the wholesale market prices go down and can be undesirable in the short term if they go up significantly.

The main benefits of a month to month variable contract are:

The prices are typically lower than a fixed rate because the supplier does not have to price in future market uncertainty.

• Flexibility of a month to month with the ability to simply switch (usually with no fees) at any time to another supplier if you ever prefer to switch.
  We typically recommend a variable rate for our residential customers as they can benefit from the lower variable rates, there are no fees to switch or cancel, and any short term rise in prices usually have a minimal financial impact because residential energy usage is significantly lower than commercial customers.

A Fixed Rate is rate that is “locked in” similar to a mortgage rate, albeit for a much shorter period of time.  Fixed price contract terms typically run from as short as 3 months to as much as 5 years.  However, the most common fixed term lengths are 12, 24, and 36 months.

• The main benefits of a fixed longer term contract are:
• The prices are fixed and “locked in” for the duration of the term, meaning they will not go up (or down) regardless of the current wholesale market prices of electricity or the commodities that effect the supply (such as coal or natural gas, etc.)
  The price stability of fixed pricing allows for better budgeting and planning for larger users of electricity.  As long as a customer expects to keep their usage about the same as they have historically, with a fixed price they will have a very good forecast on what their energy costs will be over the next 12 to 36 months (or term of their particular contract.)

We typically recommend a fixed rate term for our commercial customers as they can benefit from the price stability of a fixed rate that allows them to budget their energy costs.

Four Leaf Energy works very closely with each client to review your specific needs and goals and make a recommendation that best fits your goals for low prices, market flexibility, risk tolerance, budgeting and forecasting, cost control, and price stability.