Variable Electric Prices – Know the Risks. Use a Broker!

Variable Electric Rate

“I’m very angry,” said John Venti, a business owner in the Midstate.

Venti, is upset about his most recent electricity bill from Pennsylvania Gas and Electric. He typically paid between $2000 and $2500 for electricity through Met Ed.

This month? “Just under $8,000.”

John’s variable electric price with his competitive supplier jumped from eight cents to 28 cents per kilowatt hour.

“It was just complete shock,” Venti said. “I cried, just because there’s no way I can afford that.”

John is not alone.

We have heard horror story after horror story of business owners that contracted for variable price electricity contracts.  Many signed up for a six-cent rate but didn’t read the fine print about it being a variable rate. It jumped to 22 cents per kilowatt hour the second month.

When they originally signed up, the sales person promised a competitive rate within a few cents of the utility company’s rate.  Well, that was before the unusual weather we are experiencing.

The Public Utility Commission regulates power companies but has very little—pardon the pun—power to reign in variable supply rates. Variable electric prices make sense for a buyer who truly understands the risks and rewards.  But for small businesses, the risks can be catastrophic.

Use an experienced broker

This is just one more reason why it truly pays to contract your electricity through a reputable broker such as Better Cost Control.  By working with all the suppliers, we obtain the best prices and explain all the different contract details so you understand what you are doing.  We never advise small businesses to obtain variable price contracts. Since 2002, we have been helping businesses get the right electricity and gas supply contracts for their businesses.

To obtain a quotation on your business electricity or natural gas, contact us today!

A related story from the Philadelphia Inquirer.