Understanding Your No Contract Electricity Plan

Understanding Your No Contract Electricity Plan

May 22, 2023
by
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.

Flexibility

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.

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