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How to protect from energy price hikes

Has Your Energy Bill Increased? Here’s Why, and How to Avoid It.

If you’re a New Yorker who did a double-take on your utility bill — you’re not alone. With recent energy bills doubled or even tripled, it has left residents searching for answers and reform. Many city and state lawmakers are calling for utilities to review their billing practices.. How can energy prices suddenly jump without any warning? Find out how you can prevent sticker shock from happening again.

Why are energy rates spiking?

The United States currently produces 40 percent of its power from natural gas power plants, but its demand has only been increasing. Now, combine this with its limited supply and the cold weather front, electricity rates have skyrocketed.

Utility’s default: variable-rate plan

The utility’s default plan is a variable-rate plan, which means the rate per kilowatt-hour (kWh) fluctuates from month to month. It follows the volatile market where there can be changes in electricity price due to: high demand and low supply, seasonal weather change, and fuel costs. This is why you can see changes in your current bill, even if your electricity usage is the same.

A secure solution: fixed-rate plans

Put your mind at ease with a plan that is free of surprises. In a deregulated state (such as New York and New Jersey), you can opt for a fixed-rate plan where the price per kWh remains the same throughout your contract’s term. You don’t need to second-guess next month’s rate as it doesn’t waver with the market.

 With a fixed-rate plan, you have the opportunity to lock in rates while they’re low. It allows you to plan ahead of potential price hikes before seasonal changes in the summer and winter. The rate will remain in effect throughout your contract, regardless of changes in the unpredictable market.

City Power and Gas’ fixed-rate packages

At City Power and Gas, we offer fixed-rate plans of up to 24 months where you don’t have to worry about pricey unexpected changes. We’re committed to delivering the best rates whether you choose renewable energy or a combination package. Find your ideal energy plan by typing in your zip code here.

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