Is there a time of year that is best for shopping electricity rates? I am often asked this question but the reality is that there is no specific time of year that works best.
If there were a specific time of year when rates were lower you could make a fortune in the energy commodities market.
You could trade on the Chicago exchange each year and make a good living knowing when energy would be lower and you would never have to work again.
In reality seasonal weather changes, energy shortages, summer demand spikes are all built into the price of energy already.
For prices to go higher or lower in the summer you would need an abnormality in the weather or supply of energy to occur.
These abnormalities in supply and weather is what you would need to predict in order to price electricity prices correctly each year and come out with the cheapest price of the year annually.
Since nobody can accurately do this consistently this has a lot to do with why there are not thousands of professional energy traders becoming millionaires right now.
Also since you and I cannot do this we also can’t predict electricity prices being lower in the winter or the summer.
In reality your guess is a 50/50 crap shoot each and every time you lock in your electricity price for the year and hope you locked in while prices were near their bottoms and not their tops.
What you can do as a consumer is compare prices using a widget like the one we provide on our website. You enter your zip code and click compare and a list of providers and rates will appear.
Find a good cheap rate and lock in for a year and hope because that’s all you really can do, that prices in the markets are currently near their lows.
A good tip is if prices look relatively low to you or something affordable than that is a likely indicator that locking in for a year might not be a bad idea.