Understanding Your No Contract Electricity Plan

Understanding Your No Contract Electricity Plan

May 22, 2023
Shawn Cornett

Are you looking to lower your electricity bills? Data shows that the average electricity bill was $122 in 2021. You might be paying your monthly bill without the realization that there are other plans available to you.

One option is no contract electricity plans. These plans provide you with the freedom to switch plans whenever you choose without the drawback of costly cancellation fees.

Are you wondering if this residential electricity plan is right for you? This article explains the ins and outs of contract free electricity plans, along with several other options.

What Are No Contract Electricity Plans?

No contract electricity plans are also referred to as variable-rate plans. With these plans, you pay per kilowatt-hour, with various factors playing into your rates. This includes the current market price and other factors outlined by your retail energy supplier.

Electricity's market cost changes often, which means your rates might, too. This can be positive when market prices are low, but high temperatures can affect your month-to-month electricity plan. This is true whenever there's a demand for energy, driving prices upward.

Some variable-rate electricity plan options start with low fixed rates before increasing to higher rates. Always familiarize yourself with the rates so you're prepared for your monthly bill.

Benefits of Variable-Rate Plans

When opting for a variable-rate electricity plan, there are several benefits you can expect. Let's take a look.

Increased Savings

Some benefits of variable-rate residential electricity plans include increased savings. This means you'll enjoy reduced energy bills, like when natural gas prices are low. If it's an unusually warm winter or cool summer, you'll also benefit from increased savings.

Energy providers that offer variable rate plans are on top of the energy market and look for the best price for their customers.


You can also take advantage of increased flexibility if you're looking to switch from one energy provider to the next.

You don't have to worry about cancellation fees. If you find a plan you like better, you can switch at your leisure without costly fees from breaking a contract.

Variable rate plans are also ideal for anyone who frequently moves or has an upcoming move planned. You won't be locked into long-term electricity contracts that would require you to remain in a specific service zone to avoid cancellation fees.

Best Time to Shop

With no contract electricity plans, you should time them with your current contracts. For example, if you're within 30 to 60 days of your contract expiring, you'd want to begin looking for variable-rate plans. Then ensures you seamlessly transition from one plan to the next.

Ambit's Loan Star Flex Plan

Ambit's Loan Star Flex Plan is ideal for property managers rehabbing property or fixing it up for a few months, prepping it to rent. If you require short-term flexibility, then this plan is ideal for you.

This plan features zero early termination fees, so you can cancel at any time. On average, you can expect $4.95 in additional monthly charges.

Other Electricity Plans

A variable plan is best for anyone in need of month-to-month flexibility. If you don't require this type of flexibility, there are other plans you can consider. Let's take a look.

Fixed-Rate Electricity Plans

Fixed-rate electricity plans are ideal for anyone looking to pay a set rate for their electricity. This fixed rate is set for the length of your contract. Regardless of what happens to electricity prices outside of your plan, you'll pay the same price per kilowatt-hour.

Even if you have a fixed-rate plan, you'll still need to pay for taxes, electricity delivery fees, and any other surcharges outlined in your contract. Always read the fine print so you understand your monthly bills.

Fixed-rate plans ensure your bill remains unaffected by market conditions and prices. Electricity prices fluctuate during the hot summer months, but fixed-rate plans keep your bills consistent.

Hot summers aren't the only reason why market prices fluctuate. Very cold winters, bad storms, the price of fuel, the cost of power plants, and electricity prices on a wholesale level all affect the cost of fuel.

However, contracts for fixed-rate plans mean you're locked into a set rate regardless of market prices. This rate is secured until your contract ends.

Ambit's Lone Star Classic Plan

If you're interested in a fixed-rate plan, consider Ambit's Lone Star Classic Plan. This simple plan comes in a 12 or 24-month contract. Additional monthly charges are $9.95. If you terminate your contract early, there is a $199 fee.

High-usage customers will save more money monthly with every kilowatt over 1,000. These plans come in 12, 24, or 36-month contracts and also feature a $199 early termination fee.

Ambit's featured plans offer countless benefits. If you take advantage of our Summer Break plan, you'll receive 50% off the rate you pay for electricity from June through September.

This plan has a contract length of 12 months and additional monthly charges of $9.95. If you cancel this plan early, there is a $199 cancellation fee.

Ambit's Free & Clear Nights plan is also a 12-month contract with $9.95 in additional monthly fees and an early termination fee of $199. This plan is perfect for anyone who is up late at night and runs their appliances after peak daytime hours. It's also great for anyone who uses the power grid and charges their vehicle overnight.

Ambit's Ultimate Perks plan is another excellent option. It lets you earn monthly Reward Dollars that are good at restaurants, retailers, travel destinations, and sources of entertainment.

You'll also enter for the chance to win giveaways, grocery coupons, and pick-to-win challenges. There is no expiration date on these Reward Dollars, so you can let them accrue for larger purchases.

This contract is over 12 months and has an early termination fee of $199.

The Best Electricity Plans

If you're interested in a flexible plan without a cancellation fee, then no contract electricity plans are ideal. These plans are best for property managers or anyone looking to move frequently, as they avoid cancellation fees.

No matter what type of electricity plan you need, Ambit Energy has you covered. Sign up today with peace of mind knowing you can change your plan at any time, up to once a year.

Mastering Your Energy Bills: Strategies for Predictable Electric Utility Costs

Managing energy bills can be a challenge for many households, especially when unexpected spikes occur. However, with some strategic planning and awareness of usage patterns, it's possible to avoid surprises and maintain more predictable electric utility bills. In this blog, we'll explore practical tips and strategies to help you take control of your energy costs […]

The Cost of Electricity: Exploring Hawaii's Surprising Reality

When it comes to the cost of electricity, many people are often surprised by which state tops the list as the most expensive. If I were to tell you that Hawaii holds this title, it might raise a few eyebrows – and rightfully so. At first glance, Hawaii seems like a prime location for renewable […]

Is Green Energy Really Expensive?

In recent years, there has been a surge in interest and investment in green energy solutions. Advocates argue that transitioning to renewable sources like wind and solar power is not only essential for combating climate change but also cost-effective in the long run. However, skeptics often raise concerns about the affordability of green energy, citing […]

Understanding Energy Deregulation in Texas: A Path to Consumer Choice

Energy is a vital component of modern life, powering everything from our homes to our businesses. In Texas, residents enjoy a unique privilege – the ability to choose their energy provider. This freedom of choice stems from a concept known as energy deregulation, a policy that has had a significant impact on the energy landscape […]

The Complex Reality of Green Energy

Green energy has long been hailed as the savior of our planet, promising to reduce carbon emissions and mitigate the impacts of climate change. However, as we delve deeper into the intricacies of renewable energy sources like wind and solar, it becomes clear that the picture is not as rosy as it seems. In this […]

The Misconception of Renewable Energy

Renewable energy has long been hailed as the solution to our environmental and energy challenges. The idea of harnessing natural sources like the sun, wind, and water to power our world without depleting finite resources is undeniably attractive. However, amidst the enthusiasm for renewables, there lies a critical misconception – that most renewable energy sources […]

3 Practical Strategies to Reduce Your Energy Bill

Managing energy costs is a concern for many households, especially as utility bills continue to rise. Fortunately, there are several simple yet effective strategies that homeowners can implement to lower their energy bills. In this blog post, we'll explore three easy ways to reduce energy expenses without compromising comfort or convenience. "Utility costs, especially the […]

Debunking Renewable Energy Plans: Why They're a Scam and What You Can Do Instead

In recent years, there has been a growing trend towards renewable energy plans as individuals and businesses seek to reduce their carbon footprint and support sustainable energy sources. However, what many people don't realize is that some of these renewable energy plans are not as green as they seem. In this blog post, we will […]

Unveiling the Hidden Fees on Your Electricity Bill in Texas

In the realm of personal finance, few things can be as frustrating as discovering hidden fees on your bills. Electricity bills, in particular, can be notorious for these sneaky charges that often go unnoticed until they start significantly impacting your monthly expenses. If you're a resident of Texas or any other state with a deregulated […]

Navigating the Challenges of the Texas Power Grid

  The Texas power grid has been a topic of intense discussion in recent years, particularly following events like the polar vortex that almost shut down the entire grid. While such occurrences are often deemed once-in-a-lifetime events, they have highlighted underlying issues within the grid's infrastructure. One of the primary concerns revolves around the integration […]

Laredo Electricity: Compare Providers, Best Rates and Cheapest Plans

Electricity is significant for our routine lives, controlling and providing our homes, workplaces, and businesses. In Laredo, Texas, individuals have numerous choices when picking an electricity provider. Understanding the market, comparing diverse suppliers, and finding the most reasonable rates and plans can save money and ensure reliable service. This guide will explore the electricity market […]

Killeen Electricity: Compare Providers, Best Rates, and Cheapest Plans

Electricity providers are the backbone of contemporary life in Killeen, Texas, supplying power to residences, businesses, and other essential services. Reliable electricity is important for everything from lighting and heating to operating and powering electronic devices.  Without dependable electricity providers in Killeen, TX Ae, daily routines would disrupted, affecting productivity and comfort levels. This blog gives […]

Electricity Providers in Edinburg: Comparison of Best Rates and Plans

In the bustling city of Edinburg, TX, residents are continuously seeking ways to reduce their monthly expenses, and one significant area where savings can be achieved is in the realm of electricity bills. With various Edinburg, TX, electric providers offering diverse plans and rates, finding the most cost-effective and reliable option can seem daunting. However, […]

Grand Prairie Electricity: Compare Providers, Best Rates and Plans

High energy bills can be a significant pain point for many households, especially in areas like Grand Prairie, where fluctuating energy prices can challenge budgeting. However, with the right information and a bit of savvy shopping, you can find electricity providers Grand Prairie that offer reliable service and affordable rates. This guide will help you […]

Frisco Electricity: Compare Providers, Best Rates, and Cheapest Plans

With electricity providers in Frisco offering a variety of plans, it can be daunting to find the one that best suits your needs and budget. High energy bills are a common pain point for many, compounded by the search for reliable service. This guide is designed to help you navigate the electricity market in Frisco, […]

Katy Electricity: Compare Providers, Best Rates, and Cheapest Plans

Discover Katy's Cheapest Electricity Plans. Are you tired of high energy bills and unreliable service? You're not alone. Many Katy residents are seeking better deals and more reliable Katy electricity providers. In Katy, Texas, where summer temperatures soar and air conditioning is non-negotiable, finding an affordable and dependable energy provider is crucial. This blog explores […]
1 2 8