The electricity bills have been very high in most of the cities and people suffer in paying the electricity bills regularly. The deregulation act has given a huge relief to the people through the right to purchase the electricity on their own. This right has given the whole rights for the people to select the plan for their house and select the period of the plan. The people can pick the plans as per their needs which will not waste money on the usage of electricity. Houston has given the rights to the people and they are free to choose the energy suppliers themselves Electricity plans
The energy rates are available in very low in some of the companies who wish to serve the people. Many of the companies are on the profit motive and only a few companies wish to help the poor people. These types of companies help poor people to enjoy the electricity in their house at very low rates. The energy plans are of two basic categories such as fixed-rate plans and the variable rate plans. The fixed-rate plans are also known as rigid plans which do not have the flexible quality of changes in the rate. It will have a fixed rate which is unchanging till the end of the full period of the contract.
Contract Length of the Plan:
The rigid rate plans have no link with the market rate and so there will not be any changes. These plans will have the contract structure and the period of the contract can be chosen by the people itself. The contracts will be available for six months, yearly and more duration. Once, the contract period is signed then there will not be any chances to change the rate of the plan and the duration of the electricity plan. They will remain rigid until the end of the whole period of the plan. This rigidity is helpful for the people who leave the house for rent.
The next type of plan available in the electricity companies is flexible plans. This flexible plan is also known as variable-rate plans. This plan will be purely based on the market rate. There will be more changes in the rate of the plan according to the market rate. The market rate will differ very often and so this plan will also face the changes. The rates of the plan will increase and also decrease as per the situation of the market rate. The most important and the liked feature of the plan is that the people can switch to any plan when they are at present using this flexible plan.
The changing option is very easy in this flexible plan as there is no agreement on the contract period. The people who are in the fixed plans under the contract system will have to face some difficulties in changing to other plans during their contract period. In case, if the contract period is not ended then the person must pay extra for changing the plan. This will be an additional payment but in the variable plans, such an extra amount is not required. It is very simple and so people pick this plan with some low rates.