Here are Nine Very Important Things you need to know before, you choose your next utility electricity provider for your business.
1) There is BIG difference in what rate you will be charged will be based on the type of contract you choose to enter into. (Keep in mind the more risk you are willing to take the cheaper the rate in the contract.) There different type of contract you can enter into, which is as follows: fixed, fixed with a variable component, Variable, and swing contracts. (Please note swing contracts are not true fixed, due to the fact, if you go over or below a certain percentage in consumption from last year, you will be charged more than the fixed rate.)
All contracts have their benefits and drawbacks.
2) Congestion charges, are the cost of delivery spikes in delivering electricity to you. Now at one time, companies use to absorb this cost. However, now they pass those charges to you, which is above and beyond the rate in your contract; unless your contract specifically states it included in the rate. (Normally you will find RUC & congestion charges are not included when receiving a quote.) You NEED to ask!
3) Anyone can switch electric companies as long as you are not in a co-op.
4) Rates on electricity vary by their start dates and the length of the term. When getting quotes make sure you give all the companies the same start date and terms you are looking for.
5) There always two utility companies involved in electric. One is the company you buy electric from and one is the one that delivers the electricity. The following are Utility companies in Texas that deliver electricity: AEP-NORTH, AEP-CENTRAL, ONCOR, CENTERPOINT, and TNMP. Now these companies all own the wires and transformers and charge a delivery charge to have the electricity delivered to your business. Now the companies you bought your electricity from will show this as pass-through charges on your bill.
6) Service fees (Meter fees) are fees they charge to manage your account and are usually charged based per meter. There are more and more Utility companies dropping this fee. However, those that do charge these fees usually provide just a quote for their rate on electricity and don't bring up the meter fee. * When you only have one meter, it may not be much of an issue. However, if you have multiple meters can be a substantial expense.
7) Check the cancellation clause in your contract. They are different and may be important if you are going to move or close down a location. Any questions call us at 956 381-4446
8) Most companies will NOT require a security deposit unless there is a credit issue. Now if there is a credit issue not all companies have same requirements. So if one asks for a security deposit, the next company may not, because their credit requirements are less. Now if you find all companies are requesting a security deposit not all will require the same amount on a deposit. So best thing to do is shop around for the best deal.
9) Payment options. Some companies charge a fee if you pay online or use a credit card. Now if you normally pay by check, then there usually will be no issue. However, if you use other means of paying, then you need to check the company for their payment fees.
Real Corporation, 1703 W. Calle Cedro, Edinburg Texas 956 381-4446