[Gentleman]

With the recent announcements about the 16 percent increase in hydro costs to consumers, would one be better off to purchase their electricity from a third party supplier?

Looking at energyshop.com and the contract pricing, it looks pretty attractive now. And I wonder if one then opts out of TOU pricing when entering into a contract with an electricity supplier?

What is the consensus on electricity contracts? Besides reading the fine print.

 

[57]

We have discussed third party providers of electricity, gas, etc extensively in this forum and the consensus is that unless you are extremely lucky with your timing (like locking in when prices are very low), you are very likely to spend more going that route. Locking in when prices are high is usually not a good idea, but, of course, the final decision is yours.

 

[cambo]

I agree with 57. Now is definitely NOT the time to lock in, as you'll be locking in at today's price, plus a bit more for a cushion. As well, the price will fluctuate as we head into the cooler months and A/C is not required as much. I have a problem signing any kind of contract such as this. Not only are you locked into a multi-year contract with a provider, at some point when the actual price drops, you'll still be paying more than the market rate.

If you can stick it out for another 6 weeks or so, the price will get better as A/C is not required anymore. Also, you may want to look into your TV's and appliances to ensure they actually are efficient. As noted before, LCD TV's are NOT as efficient as everyone once thought. Wait for the LED's to come down in price as they are much easier on the meter.

 

[99semaj]

I believe it is mathematically impossible to save money with a reseller once you factor in the negative "benefit" charges that are part of those contracts. (that's right...they charge you an extra fee when the pricing is unfavorable to them and have the audacity to call it a benefit)

The most frustrating part of this scam is that we are all assesed a surcharge to maintain the IESO infrastructure...iother words, we are subsidizing this scam whether we choose to be suckered or not.

 

[Gentleman]

Thanks to all who replied.

We have done all we can in our home to realize energy efficiency. We recently replaced our 7 appliances with all energy star new appliances, had a new high efficiency gas furnace installed with a DC ECM motor, and our home is modest and well insulated. And we have a new 12 SEER 1.5 ton A/C unit cooling our home.

We do however have some LCD tv's which I intend to place on power bars such that I can completely power them off when not in use.

My biggest concern and reason for considering an electricity contract was the coming TOU pricing coming into effect in our area next spring. We do lower the temperature of our thermostat during the heating season when we are at work, but in the summer we maintain a constant comfortable temperature all day/night as I don't believe it is good practice to shift temperatures to save a little. I think this is hard on the A/C unit.

I will follow the electricity contract pricing to see if it drops in the coming months along with the demand for A/C.

Thank you all for your comments!

 

[ScaryBob]

I don't believe it is good practice to shift temperatures to save a little. I think this is hard on the A/C unit.

I don't think it hurts it. The worst thing for A/C units is rapid on/off cycling and modern electronic thermostats prevent that. A/C units work more efficiently under certain conditions, such as the moderate outdoor temperatures at night. Keeping the house at a constant temperature means that the A/C unit must work longer and less efficiently than if it was set back during the day and run more at night. Many people are more comfortable with a slightly cooler temperature at night than during the day. That doesn't even take into account the savings gained from setting the A/C back during the day or TOU pricing.