Should you terminate your contract for a better energy rate?

Video Transcript

Brian McLemore here, Senior Advisor for Nania Energy Advisors. In today’s Two-Minute Tuesday, we’ll be covering a frequently asked question that we get a lot: “Should I terminate my current contract if I get a better rate offer later on?”

Short answer: No.

In the majority of cases, it is not advised to terminate a contract. There could be termination language in these contracts that could cost you more than you would ever save with a newer, lower rate. This is especially true if you’re a heavier user of natural gas or electricity.

The language in these contracts is to protect you and the supplier. It protects you because you get a rate locked for a certain amount of time, and the supplier has a guarantee that you’re going to stick around and honor the contract.

There are some rare cases where it might be necessary to review your contract, but be advised that you should have a trusted advisor guide you through that process before making any changes. Some of those changes could include a predatory contract, a massive change in usage, or an extreme downturn in the market.

But, again, be advised that you should have an advisor guide you through this before you make any changes to a contract.

I hope this answers your question! Feel free to reach out if you have any other questions pertaining to this topic. I look forward to any discussion we may have.

Thank you, and have a great day!


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