If you can bear the risk, I think it is cheaper in the long run to go floating. If cost certainty is what you are looking for, a fixed rate might be suitable. But these fixed rates are likely to be more expensive over the long run.hey there, im buying my first house and was wondering what is the general consensus on the best plan term and provider of electricity/gas in ontario?
My elderly mother got suckered into one of these types of plans for electricity. Now she's paying an extra $40 or so a month and from the research I've done, there's nothing that can be done (after a short grace period - I believe 10 days) to get her out of it except for paying an extremely large penalty. From what I've heard these salesmen get between $50 and $100 for every poor sucker they sign up. They use extremely deceptive methods and make out as if they are sanctioned by your regular power supplier. Just stick with your regular suppliers and avoid the door to door salesmen like the plague.I have had a bunch of salespeople knock on my door and try to lock me in to a fixed rate plan and my answer has always been: "leave your information with me and I'll read through it and get back in touch with you." Not once have they left me the info. Only excuses why I cannot have the info. to review That's enough for me.
Not sure about nat gas. I've locked in 5yrs and broken even over the 5 years,If you can bear the risk, I think it is cheaper in the long run to go floating. If cost certainty is what you are looking for, a fixed rate might be suitable. But these fixed rates are likely to be more expensive over the long run.
I don't have personal experience with them but I've read good things about RiteRate.ca.
My experience/opinion is the same as CC.
Over a period of 5 years or more, you win by going market rate with your local hydro and natural gas company, instead of a re-seller/gas marketer.
Gas & hydro resellers use scare tactics to get you into a signed contract.
I fell into this trap many years ago when we bought our first house during summer.
..... more insight and analysis into the direction of future commodity prices.
A regular Joe does not have the same insight.
Remember that they are in the business of making money and they will never offer a rate that saves you money and costs them money over the long run.
Think about it - you can't both win.
For one to win over the long run, the other must lose.
And they have the odds in their favor way more than you do.
The marketers are in business to make money for themselves. Locking into
a fixed price can bring peace of mind..but in the end after 5 years, even if
you break even, you are doing well.
With the demand for natural gas increasing year by year, you just don't know
in year 1, where the floating costs (Enbridge) of natural gas will be in 5 years,
just like property taxes going up. I think I have broken even on the last
contract I signed on natural gas, and the only way I was going to resign was
if I got a better deal than the last one..and I did.
As far as electricity, with green windmill farms going in, reactors needing
repairs, and TOU meters, it's only going to go up. The days of cheap power
are over and the current provincial administration intends to stick it to the
consumer along with the HST.
The hidden costs that the marketers don't tell you is the "provincial benefit"
..a extra charge and benefit to the power generators and marketers...
that can be significant, never mind the lock in price.
I don't know about them going bankrupt, but the energy marketer that II would wonder at what point does this company that says it's going to save you a ton of money just go bankrupt when it starts losing money...