Understanding Fixed Rate and Flat Bill Energy Plans

While Fixed Rate energy plans remain popular, the Flat Bill (unlimited usage) energy plan is also growing in popularity among energy consumers. Understanding the differences between Fixed Rate and Flat Bill energy plans is important. Here are some key concepts to know to help you choose the best plan for you.

What is a Fixed Rate energy plan?

A Fixed Rate energy plan gets its name because the rate per ccf/therm or kWh remains the same (or “fixed”) for the duration of the contract with the energy supplier. You can lock in a low energy rate for a set period of time and avoid any increases in the market price of electricity and natural gas.

Regardless of changes in market supply and demand, inflation, or extreme weather for example – your fixed rate does not change.

What is the math?

A Fixed Rate energy plan is a multiplication of your rate per energy unit of measure X the total amount of energy you consumed during the course of the monthly bill period.

Let’s say you sign up for a 12-month Fixed Rate natural gas plan at $0.6900 per ccf. If you use 100 ccf of natural gas during the monthly bill period, your estimated bill for your natural gas supply would be about $69.00 for that month. If you used 200 ccf of natural gas, your bill would be about $138.00 for the monthly bill period.

In an electricity example, let’s say you sign up for a 12-month Fixed Rate electricity plan at $0.0800 per kWh. If you use 1000 kWh of electricity during the month, your estimated monthly bill for your electricity supply would be about $80.00 for that month.

This basic pattern of multiplication repeats each monthly bill cycle thru the term of your contract. When you enroll in a Fixed Rate energy plan, you get the same price per ccf/therm or kWh fixed for the entire duration of the contract term.

Notes to remember:

A key thing to remember is that you will probably use more natural gas in some months, and less in other months. The same could be said about electricity usage.

Most residential energy consumers tend to use more natural gas in the winter and more electricity in the summer. Your total monthly bill on your natural gas or electricity supply could change depending on the time of year and how much energy you use.

With a Fixed Rate energy plan, the price per unit (ccf/therm for natural gas; or kWh for electricity) does not change during the entire term of the contract. This will give you certainty that your price will not change during the term of the agreement.

Fixed rates provide stability, especially when you’re budgeting your energy costs. If market prices rise during your contract term, you’re protected. Extreme weather temperatures will not change your fixed rate. However, remember that your energy usage may increase because of the extreme temperatures, which may cause bill increases.

Learn more about our Fixed Price Peace of Mind plan here.

What is a Flat Bill energy plan?

Flat Bill (or unlimited usage) is an innovative approach to the traditional Fixed Rate energy plan.

A “flat” rate does not vary with changes in the amount used, volume consumed, or units purchased. A Flat Bill energy plan is a locked-in monthly price that is not based on a per unit ccf/therm or kWh usage amount consumed.

Instead of paying a fixed price per ccf/therm for natural gas or per kWh for electricity, a Flat Bill plan simply sets a monthly charge. It’s similar to a monthly subscription fee that you might pay for video streaming services like Netflix. In the same way that you pay the same monthly subscription fee no matter how many shows you watch, you pay the same flat bill amount no matter how much energy you use.

The Flat Bill energy plan is popular for consumers seeking easier energy budgeting and simplified monthly billing. No matter how much energy you use, you’ll always know what to expect.

Learn more about our Unlimited Energy* plan here.

Understanding Fixed Rate and Flat Bill Energy Plans – What’s the better choice?

The answer is truly up to the energy consumer to decide. It often depends on how you like to budget for your home energy costs.

The Flat Bill energy plan is popular with consumers who want an easy, predictable “set it and forget it” plan. No more agonizing over thermostat settings. No more worrying about controlling how much energy you use each day. You simply pay the same flat bill amount each month.

A Fixed Rate energy plan is based on a per unit price of how much energy you actually use. A Flat Bill energy plan is based on a monthly subscription fee.

Both options provide price certainty and stability regardless of changes in wholesale market conditions. The choice between the two often depends on your preferences and how you like to manage your home energy costs.

Switching to Santanna is easy to do. We’re here to keep it simple for you. Click here to learn more about our energy solutions, or simply give us a call, and our energy experts will be happy to help!

Share This Story!

Understanding Fixed Rate and Flat Bill Energy Plans

While Fixed Rate energy plans remain popular, the Flat Bill (unlimited usage) energy plan is also growing in popularity among energy consumers. Understanding the differences between Fixed Rate and Flat Bill energy plans is important. Here are some key concepts to know to help you choose the best plan for you.

What is a Fixed Rate energy plan?

A Fixed Rate energy plan gets its name because the rate per ccf/therm or kWh remains the same (or “fixed”) for the duration of the contract with the energy supplier. You can lock in a low energy rate for a set period of time and avoid any increases in the market price of electricity and natural gas.

Regardless of changes in market supply and demand, inflation, or extreme weather for example – your fixed rate does not change.

What is the math?

A Fixed Rate energy plan is a multiplication of your rate per energy unit of measure X the total amount of energy you consumed during the course of the monthly bill period.

Let’s say you sign up for a 12-month Fixed Rate natural gas plan at $0.6900 per ccf. If you use 100 ccf of natural gas during the monthly bill period, your estimated bill for your natural gas supply would be about $69.00 for that month. If you used 200 ccf of natural gas, your bill would be about $138.00 for the monthly bill period.

In an electricity example, let’s say you sign up for a 12-month Fixed Rate electricity plan at $0.0800 per kWh. If you use 1000 kWh of electricity during the month, your estimated monthly bill for your electricity supply would be about $80.00 for that month.

This basic pattern of multiplication repeats each monthly bill cycle thru the term of your contract. When you enroll in a Fixed Rate energy plan, you get the same price per ccf/therm or kWh fixed for the entire duration of the contract term.

Notes to remember:

A key thing to remember is that you will probably use more natural gas in some months, and less in other months. The same could be said about electricity usage.

Most residential energy consumers tend to use more natural gas in the winter and more electricity in the summer. Your total monthly bill on your natural gas or electricity supply could change depending on the time of year and how much energy you use.

With a Fixed Rate energy plan, the price per unit (ccf/therm for natural gas; or kWh for electricity) does not change during the entire term of the contract. This will give you certainty that your price will not change during the term of the agreement.

Fixed rates provide stability, especially when you’re budgeting your energy costs. If market prices rise during your contract term, you’re protected. Extreme weather temperatures will not change your fixed rate. However, remember that your energy usage may increase because of the extreme temperatures, which may cause bill increases.

Learn more about our Fixed Price Peace of Mind plan here.

What is a Flat Bill energy plan?

Flat Bill (or unlimited usage) is an innovative approach to the traditional Fixed Rate energy plan.

A “flat” rate does not vary with changes in the amount used, volume consumed, or units purchased. A Flat Bill energy plan is a locked-in monthly price that is not based on a per unit ccf/therm or kWh usage amount consumed.

Instead of paying a fixed price per ccf/therm for natural gas or per kWh for electricity, a Flat Bill plan simply sets a monthly charge. It’s similar to a monthly subscription fee that you might pay for video streaming services like Netflix. In the same way that you pay the same monthly subscription fee no matter how many shows you watch, you pay the same flat bill amount no matter how much energy you use.

The Flat Bill energy plan is popular for consumers seeking easier energy budgeting and simplified monthly billing. No matter how much energy you use, you’ll always know what to expect.

Learn more about our Unlimited Energy* plan here.

Understanding Fixed Rate and Flat Bill Energy Plans – What’s the better choice?

The answer is truly up to the energy consumer to decide. It often depends on how you like to budget for your home energy costs.

The Flat Bill energy plan is popular with consumers who want an easy, predictable “set it and forget it” plan. No more agonizing over thermostat settings. No more worrying about controlling how much energy you use each day. You simply pay the same flat bill amount each month.

A Fixed Rate energy plan is based on a per unit price of how much energy you actually use. A Flat Bill energy plan is based on a monthly subscription fee.

Both options provide price certainty and stability regardless of changes in wholesale market conditions. The choice between the two often depends on your preferences and how you like to manage your home energy costs.

Switching to Santanna is easy to do. We’re here to keep it simple for you. Click here to learn more about our energy solutions, or simply give us a call, and our energy experts will be happy to help!

Share This Story!

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