People are becoming more aware of the main advantage of contracted power, or any of its categories in electrical contracting and competing. As you read more about this loan service in support of electricity contracts, take a glimpse at why many are choosing this route. 

Month To Month Contracts (Short-Term) 

Flexibility Against Energy Market Trends 

Your residence’s overall Peak Load Contribution (Peak Load Hours and/or Days plus your consumed power in a given period) may change according to energy market trends. There are times within a year when energy rates are at their highest, and times when they are not. 

If you are the type who has the time to monitor your energy consumption to the detail and are able to do so, short-term electricity contracts are for you. There’s so much potential for you in terms of closely monitoring trends and learning which parts of the month, season, or year have the lowest electricity rates. 

You can gather these pieces of information and study them alongside data regarding consumer demand. From there, make comparisons for when energy consumption equals lower market prices or vice versa. 

Our Pointers 

Although short-term contracts mean constant renewals you will have to take care of (renewal will be necessitated after every 30 days in month-to-month categories), you will stand to gain if what you are after is seeking out the best market prices in extended courses of time.

Long-Term Electricity Contracts 

Stable And Foreseeable Rates In Energy Supply 

The benefit of long-term electricity contracts is that the supply rate will be conservative. This equates to stability and predictability. Contractors will draft according to foreseen data (and also, through data based on past readings). They will, then, use these pieces of information to construct a supply and rate framework for your electricity consumption for an entire year. 

If you are not the type who has the time to do your own strict monitoring of market prices per month, a long-term electricity contract is suitable for you. 

The pre-reviewed increases in rates every year will already be applied to your fixed contract. Only in rare instances do overheads transpire within long-term contracted power. And this is when consumers do not plan a fail-safe and seek the advice of their contractor to inspect said fluctuations. 

Our Pointers 

There is definitely a lesser need for contract renewals with those which are of a long-term scope. If yours is to be renewed on a long-term basis, you will no longer have to worry about it within that duration. Less utility-related issues to think about. At least, while the contract is in motion. 

No constant monitoring of market pricing fluctuations. Your contractor will (and probably already has done that) do this for you. All you are to fix your eyes on, and your finances, is the fee of the contracted power itself. 

You should note that these long-term commitments run for what is generally 60-month-spans. Of course, this is dependent on your contractor’s available packages for electricity contracts. Nevertheless, they are conducted within such large measures of year-on-year agreements. 


Be sure to calculate your budget, estimated energy consumption, and the like, as you sign up for contracted power.