The practical difference
| Rate type | What to expect | What to verify |
|---|---|---|
| Fixed rate | The retail energy price follows the fixed contract terms for the stated period | Credits, fees, delivery pass-throughs, term, and termination fee |
| Variable rate | The price can change under the provider’s stated method and notice rules | Change frequency, pricing method, notices, and cancellation terms |
“Fixed” does not mean every bill is the same
Usage changes from month to month, so the bill changes. A fixed retail rate may also sit alongside regulated delivery charges or other changes allowed by law. Bill credits can activate or disappear as usage crosses a threshold.
Why someone might consider a variable plan
A variable plan can offer flexibility or a short commitment. The tradeoff is uncertainty: future prices may rise. A low first-month price does not establish what later months will cost.
Questions to check in the EFL
- Does the label identify the product as fixed, variable, or indexed?
- Which exact charges are fixed?
- Can delivery charges change?
- How do bill credits or usage tiers alter the effective price?
- How long is the contract?
- What happens at the end of the term?
How to compare them honestly
Current fixed-plan pricing can be projected using the published formula and current regulated charges. A variable plan’s future rate is inherently less certain. Any estimate should make that uncertainty clear instead of presenting an unknown future price as guaranteed.
Power Made Clear ranks plans only when their current pricing can be reconciled from available documents and supported rules. Estimates are not guarantees of future bills or savings.