There are quite a few advantages to choosing a month to month plan versus a long term plan. Some of the reasons why getting month to month plan would be a wise option are:
- If your lease expires soon
- If you are selling your house
- If you expect electricity rates to fall or stay at their current level
- If your credit rating is less than stellar and you don’t want to pay a deposit
If you are selling your house or uncertain whether or not you are going to renew your lease, it is best to go with a month to month plan. This is because electricity contracts have early termination fees that you will have to pay if you terminate the service before the contract ends.
Signing a long-term contract right before rates are expected to fall is a recipe for disaster. Customers who were on a month to month plan as rates fell are now reaping the benefits.
Pre-paid electricity or a pay-as-you go plan is one way of evading upfront deposits for electricity if you have a bad credit score. It works out well especially if you do not have the funds to finance a hefty deposit.