What is the difference between fixed-rate and variable-rate plans?

Fixed-rate plans offer customers a consistent and predictable energy rate throughout their contract term. This means that the rate you sign up for at the beginning of your contract will remain the same for the entire duration, regardless of market fluctuations. This provides peace of mind and budget stability, allowing customers to plan their expenses more accurately. On the other hand, variable-rate plans have rates that are subject to change based on market conditions. This means that the rate you pay for your electricity may fluctuate month-to-month, reflecting changes in the wholesale energy market. While variable-rate plans offer potential savings during periods of low market prices, they also carry the risk of increased rates during times of high market volatility.