Lock in your energy rates and save? Does this work?

[JasonEtheridge]

Hi,
Someone has approached me on behalf of an energy reseller to lock me into my gas and hydro bill at a fixed rate for 5 years.
Apparently we re at 12 year lows and things are about to explode. I didnt give it much thought until I was told the rate would lock me in and I wouldn`t have to worry about the new smart meters that bill me more during the day.

Have any of you had or locked into rates?
How did it work out for you?
Pros? Cons?


Feedback is appreciated.

Here is part of the blurb that was given to me..

"Energy costs are at a 12 year low because of low demand during the recession. Not for long.

This past week the Ontario Energy Board released a statement to the
media regarding hydro rate increases coming this summer. Actually, the
rates or per kilowatt hour will change effective May 1, 2010.

Some of you are on TOU (time of use) meters already! Meaning, to save
money on your hydro bill, you will be required to change your habits.
Running dishwashers, washers/dryers, oven, stoves, and all electrical
appliances would be more economical to use in the off peak hours. (9pm
to 7am).

PLUS HST IS COMING JULY 1ST.

The Ontario Energy Board has announced that as of April 1, 2010 the Gas
supply rate is increasing as well. For Enbridge customers this rate will
now jump to 21.1171 cents per cubic meter (after the Gas Cost
Adjustment). These prices will continue to increase as the economy
continues to rebound.

Please see attached link for further information:
http://www.oeb.gov.on.ca/OEB/Consumers/Nat...Gas+Rates"

 

[JohnS]

QUOTE (JasonEtheridge @ Mar 30 2010, 11:20 AM) Hi,
Someone has approached me on behalf of an energy reseller to lock me into my gas and hydro bill at a fixed rate for 5 years.
Apparently we re at 12 year lows and things are about to explode. I didnt give it much thought until I was told the rate would lock me in and I wouldn`t have to worry about the new smart meters that bill me more during the day.

Have any of you had or locked into rates?
How did it work out for you?
Pros? Cons?


Feedback is appreciated.

Here is part of the blurb that was given to me..

"Energy costs are at a 12 year low because of low demand during the recession. Not for long.

This past week the Ontario Energy Board released a statement to the
media regarding hydro rate increases coming this summer. Actually, the
rates or per kilowatt hour will change effective May 1, 2010.

Some of you are on TOU (time of use) meters already! Meaning, to save
money on your hydro bill, you will be required to change your habits.
Running dishwashers, washers/dryers, oven, stoves, and all electrical
appliances would be more economical to use in the off peak hours. (9pm
to 7am).

PLUS HST IS COMING JULY 1ST.

The Ontario Energy Board has announced that as of April 1, 2010 the Gas
supply rate is increasing as well. For Enbridge customers this rate will
now jump to 21.1171 cents per cubic meter (after the Gas Cost
Adjustment). These prices will continue to increase as the economy
continues to rebound.

Please see attached link for further information:
<A href="http://www.oeb.gov.on.ca/OEB/Consumers/Nat...Gas+Rates"" target=_blank>http://www.oeb.gov.on.ca/OEB/Consumers/Nat...Gas+Rates"

Are your mortgages variable or fixed? Why? Most people who go fixed do it for the security of knowing what their payments will be and that they won`t change. Most that go variable do it for the lower overall cost, as has been historically demonstrated. My thoughts on utilities are the same.
The power companies want to ensure that they`ll do well, of course, so they must build a safety cushion into the fixed rates.

Personally, I`m happy letting the market take care of me that way. It tends to even out a lot of things. Plus, I had the guys come knocking on my door, trying to get me to lock in my rates "before they go up"...and a few months after that, they went down again. I have to admit, I was pretty surprised to discover that this kid in his 20`s, whose job was basically cold-calling, wasn`t an expert in oil/gas futures.....


Have a good one, all!

JohnS

 

[invst4profit]

Locking in anything, mortgage or other, comes with a premium. Banks, utility companies etc. seldom ever lose money so I doubt the best rate will come from locking.

 

[Thomas Beyer]

QUOTE (JasonEtheridge @ Mar 30 2010, 08:20 AM) ...
Pros? Cons?..
pro: locked rate that is likely much higher than today`s .. and maybe maybe lower than the one in 3 years !
con: locked rate that is likely much higher than today`s and tomorrow`s and possibly high penalties

DO NOT DO IT !!!

 

[Sherilynn]

A few years back I almost got hooked into this.

As soon as the salesman left I did a thorough comparison between my past and current rates and the rate they were offering. The variable rate had fluctuated very conservatively over the years. It didn`t seem to support his claim that "things were about to explode!"

Oddly enough, nothing ever exploded and I am very happy to be paying market rates. (Correction, my tenants are very happy to be paying market rates.)

Regards,
Sherilynn

 

[larysa002]

Go on-line asap and google the company. Check the complains and penalties stories.

 

[LeighF]

DON`T DO IT! They aren`t knocking on your door to save YOU money. Unfortunately, I got sucked into this scam and have been paying through the nose ever since. These door knockers always have a hidden agenda.

 

[housingrental]

Always self insure risks you can afford to take
Insurance is a great business to be in

 

[aiden1983]

Tell this to AIG

QUOTE (housingrental @ Mar 31 2010, 10:48 AM) Insurance is a great business to be in