How to figure out when to lock in a price and how to compare offers from different suppliers
You don't need to be a market expert to figure out when to lock in a good price.
- Check your local utility company rates. Local utility company rates go up and down,
not necessarily with the market. PowerOptions staff can give you the tariff rates for any
utility for any rate class in Massachusetts. When you are comparing these rates to a supplier's
quote, remember to compare similar time periods – for example, don't compare a one-month rate
to a one-year rate.
Depending on what rate you are paying and when you switch off of service, you may also be billed or credited in arrears by your local utility company for a rate change. If you are thinking about moving to competitive supply, call your utility company or PowerOptions to find out if this applies to you.
- Find out what the market is doing before you lock in.
Energy markets are very volatile. Ask colleagues, check the gas market on the internet,
or call PowerOptions to see if this is a good time to lock in a price.
- Figure out how many months you want to lock in a price.
Typically you can begin and end a contract whenever you want to. Determining the length
of your contract is a combination of both internal and external factors: Do you need a budget
number for some period? Do you think prices are good right now? Do you want to protect
yourself against weather events such as hurricanes? Talk to your colleagues and
PowerOptions staff to determine the best fit for your institution.
- Get quotes from different suppliers. Just as you would with a home improvement project like painting your house, it's always a good idea to get multiple quotes. Some suppliers will only give you quotes for accounts over a certain size. If you are working with a broker, and they tell you a particular supplier won't give you a quote, call the supplier and check it out. Make sure you are comparing prices for the same day and for the same length of time between suppliers, and read the contract! Because markets are so volatile, sometimes a quote is only good for one day, sometimes for longer. Be wary of "open" quotes – this may mean that they are too high, or that they may change at the last minute. PowerOptions staff can help you compare pricing and contract terms at your request – although we offer a contract with a particular supplier, we are an independent organization and can offer you disinterested advice.
