When it comes to having an energy contract, it can be a bit daunting when you decide that you want to end it and change providers. Often, people wonder if that’s even a possibility – it isn’t always talked about, after all. Because of that, we tend to assume that we can’t without some rather advance notice.
Really, though, it depends on the sort of contract that you had in the first place. Today, we’ll be covering some of those different types as well as the impacts of them on whether or not you’re able to cancel your electricity contract any time that you want. There’s a bit of nuance to the topic, of course, so make sure to stay tuned.
What is an Electricity Contract, anyway?
Now, the first question that we’ll tackle here today might seem like it’s a bit obvious – why waste time on something so simple, right? Well, honestly, not everyone has a full understanding of what these are. Put simply, an electricity contract is an agreement that you make with an energy provider.
You pay them money, and in return, they give you electricity. It’s pretty simple, really. Where it gets complicated is when we look at the different types of them. There are four that you might want to be aware of.
Ongoing
The first type that we’ll delve into is called ongoing. Of course, as the name implies, it’s when the contract essentially goes until it’s terminated by either party. Otherwise, it can theoretically last pretty much forever.
Now, you can read a bit more about these in practice here, https://www.energy.gov/femp/federal-site-electricity-contracts, but keep in mind that it can vary depending on where you live. When you’re looking to end one like this, you’ll usually need to give two weeks of notice beforehand.
As far as the pros versus the cons go, you’ll find that these sorts of contracts give you balanced prices. They can also allow you to have uninterrupted service from a single provider, while also giving you the chance to change if you end up wanting to. They’re convenient in that sense.
Quarterly
Similar to the above, quarterly contracts are exactly what it says on the tin – a three-month contract with whatever provider you’re working with at the time. For this type, you’ll likely notice more changes in your power bills. That’s because your usage in terms of kWh (kilowatt per hour) is re-evaluated every quarter.
So, every three months, you’ll see a fluctuation in what you’re being charged. This can either be great or really terrible – it all depends on how much you used in those three months. That said, though, you do at least get notified a month before the price will be changing. Although it won’t work for everyone, if your usage doesn’t fluctuate much from month-to-month, it could be a viable option.
Spot
If we were to point out one type of electricity contract that’s more popular than the others here in Norway, it would likely be this one. There are a few reasons for that which we’ll be delving into. First, though, how does it work?
With these, the first thing to note is that it’s considered a commodity style of power. So, your rate will be determined by whatever the current market price for power is rather than other factors. As with any other type, there are positives and negatives to that.
Your energy prices will change on a pretty much monthly basis, which can be both good and bad. It just depend on the time of year, the weather, and even things like how energy efficient your home is. The latter factors are somewhat under your control, thankfully.
There’s also usually a cap on how much can be charged, but that will depend on where you are. The goal there is just to stop the prices from going up too high in general. Now, if you are looking for a way to avslutte strømavtale, in these cases it’s again likely going to be on a two-week notice basis.
Fixed Term
The final one that we’ll be covering here today is known as a fixed term contract, and they’re usually ones that last a year at a time. Additionally, they’re pretty much the only ones on this list that you can’t just immediately call up and terminate the contract. Because they’re fixed for that year, you’ll almost always have to wait until the end of that period.
The trade off is that you’ll have a generally fixed rate charged that whole time as well. So, if you’re not planning on changing providers within that year-long period, it’s an option that can certainly be viable. Just remember that it isn’t quite as flexible as the other choices on the list.
Ending an Electricity Contract – How it Works
The usual roadblock that people run into, if they run into one at all, is that they’ve gotten themselves into a lock-in period with their provider. Thankfully, with the spot type of contracts, this usually isn’t a factor. That’s probably why they’re so popular.
If that’s the type that you’ve got, then you don’t really have to worry about those lock-in periods. Instead, you’ll probably be needing to give your provider two weeks’ notice for cancellation. That’s much simpler.
Note, though, that this can change a bit based upon the reason for ending the contract. For now, we’ll cover a few of those bases.
Moving
A pretty common reason for needing to change providers is that you’re moving or relocating to another part of the country. This is information that you should be sure to relay to them as soon as you can. Note – you don’t always have to change when you’re moving.
If you’d rather keep the same electricity supplier, you can just tell them that. When you give them your new address and postal code, they should be able to help get it established at your new home as well. Otherwise, you can just let them know that you need to cancel your service and look for a new supplier.
Just note that if you’re moving and keeping the same provider, you’ll have to fill out another contract with them. Luckily, that sort of paperwork is mostly handled online now rather than in person, so you’ll likely get an e-mail or be able to do it on their online portal.
Changing Providers
If you are cancelling your current contract because you want to change your provider, things can get slightly trickier. Usually, it’ll be because you’ve found one that offers better prices – so, one option is to simply tell your supplier that. In some cases, they’ll be willing to barter with you to some extent and lower your current prices.
However, if you are set on changing providers, that can certainly work as well. Most of the time it’s totally free of charge – the only big exception to that is if you have a fixed term contract. Otherwise, you should be fine to contact your new supplier.
When you do that, they’ll help to make sure that your old contract is definitively terminated. Naturally, this makes things a lot easier for us as consumers – it means we don’t really have to deal with it all on our own. The fact that the paperwork has moved online is just the cherry on top, there.
Final Considerations
All in all, there are a lot of reasons that someone might end up wanting to cancel their current electricity contract. Most of the time, though, it has to do with the prices. Let’s face it – energy costs have been rising considerably in the past few years.
Because of that, we’ve all had to adapt somewhat. Often, making a change in your supplier can help you cut down on those costs if you need to. However, don’t forget that we do have some other options to do so as well.
By making simple changes in your life as well, such as adjusting your energy conservation and efficiency habits, you can reduce your bills as well! If you combine both of these things, well, you could find yourself coming out much better on the other side. It all will depend on things like how soon you can change providers, how much energy you can preserve by changing things like your appliances or even showering habits, and the like – so don’t hesitate to start soon!
