Most businesses spend more time picking a coffee vendor than their electricity supplier. That's a problem — because the wrong contract can cost you thousands over its term.
Fixed vs. Variable Rates
A fixed rate locks in your price per kWh for the length of your contract. You know exactly what you're paying, regardless of market swings. A variable rate fluctuates with the wholesale market — cheaper some months, more expensive others.
For most commercial customers, fixed rates win. Predictable budgeting matters more than chasing a discount that might disappear next month.
Contract Length
Typical commercial contracts run 12 to 36 months. Shorter contracts give you flexibility. Longer contracts usually mean lower rates — but you're locked in.
The sweet spot for most businesses is 24 months. Long enough to get a competitive rate, short enough that you're not betting on a market you can't predict three years out.
Questions You Should Be Asking
Before you sign anything, get clear answers to these:
- Is there an early termination fee? Some providers charge a flat fee per remaining month. Others charge a per-kWh penalty. Know the difference.
- What's included in the rate? Transmission and distribution charges are separate from your supply rate. Make sure you're comparing apples to apples.
- Who handles billing? Some providers bill directly. Others go through your local utility. Dual billing can cause confusion.
- What happens at contract end? Many contracts auto-renew at a variable rate that's significantly higher. Set a reminder to renegotiate before expiration.
Why Brokers Exist
An energy broker does the comparison shopping for you. We pull rates from multiple providers, present your options side-by-side, and handle the enrollment paperwork. There's no cost to you — brokers are compensated by the provider.
The result: you get a competitive rate without spending hours on the phone with sales reps. That's the entire point of OverCharged.