A. There are a number of reasons to lock into a fixed price at this time:
1. Electricity prices have declined due to a reduction in demand as a result of the recession. The economy is recovering and demand is increasing. With the closing of the coal plants in Ontario this increased demand will be supplied with green power like wind and solar which are better for our environment but are much more expensive than coal. Ontario Finance Minister Duncan announced yesterday that electricity prices will increase over 46% in the next five years as Ontario makes this transition to greener electricity.
2. Natural gas prices are at the lowest price in almost a decade. The warm winter last yearreduced consumption and there is a lot of gas in storage. With normal winters over the next few years, consumption will increase and prices will recover. This presents an opportunity to lock in at these low prices before those price increases develop.
- Look at the commodity price for natural gas or electricity
- Consider options such as time of use pricing for electricity, if offered
- Ensure you are comfortable with the length of term of the agreement
- Look for potential environmental benefits such as green power and carbon credits
- Know your rights for cancellation
- Take time to read the details of the agreement (you have to verify your agreement over the phone 10 -60 days after you sign in order to be enrolled in the program you choose)
- Ensure you have the authority to enter into such an agreement (only account holders and their spouses can sign up for energy agreements)
- Make sure you have the contact information for the marketer that you have chosen
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