Fixed vs floating energy rates

Fixed or floating? Learn how each rate type works, the benefits and considerations of each option, and which Encor rate plan may best fit your needs and preferences.

On this page

Choosing between fixed and floating rates
Fixed and floating rates at a glance
What is a fixed energy rate?
What is a floating energy rate?
Fixed vs. floating rates
How fixed and floating rates work with Encor plans
Fixed vs. floating rate FAQs

Choosing between fixed and floating rates

One of the most important decisions when choosing an Encor electricity or natural gas plan is whether a fixed or floating rate is right for you.

A fixed rate provides more predictable energy pricing, while a floating rate changes with market conditions.

Understanding how each option works can help you choose the rate type that best fits your preferences, budgeting style and comfort with changing energy costs.

And if your needs change later, your plan can too. Encor customers can change or cancel their plan at any time, penalty-free.

Fixed and floating rates at a glance

Fixed rate

Your energy rate stays the same for the length of your rate term.

A fixed rate may suit you if you prefer:

More predictable energy pricing
Protection from changes in market energy prices during your rate term
More consistency when planning your energy costs

Floating rate

Your energy rate changes based on market conditions.

A floating rate may suit you if you:

Are comfortable with your energy rate changing
Want your rate to reflect current market conditions
Have more flexibility in your budget when rates move up or down

The rate you choose applies to the energy portion of your bill. Other charges may still vary.

What is a fixed energy rate?

With a fixed-rate Encor plan, your electricity or natural gas rate stays the same throughout your rate term.

That can make the energy portion of your bill easier to anticipate because changes in market prices don’t change your fixed energy rate during that term.

Your total bill can still vary from month to month based on how much energy you use and other applicable charges.

A fixed rate may be a good fit if you’re more comfortable knowing your energy rate ahead of time.

Fixed rates are often preferred by customers who value stability, want greater certainty when budgeting for energy costs or would rather not worry about market price fluctuations during their rate term.

What is a floating energy rate?

With an Encor floating-rate plan, the rate you pay for electricity or natural gas changes based on market conditions. Because the rate reflects the market over your billing period, the final rate isn’t determined until the end of that period.

That means your energy rate can move up or down over time. Your total bill will also depend on how much energy you use and other applicable charges.

A floating rate may be a good fit if you’re comfortable with changing energy prices and prefer a rate that reflects the market.

Floating rates are often preferred by customers who are comfortable with market fluctuations and don't mind their energy rate moving up or down over time.

Fixed vs. floating rates

Both rate types give you a different way to manage the energy portion of your bill. Which one fits better depends on what matters most to you.

	Fixed rate	Floating rate
Rate predictability	Higher. Your energy rate stays the same for the rate term.	Lower. Your energy rate can change over time.
Market price changes	Your fixed energy rate does not change when market prices move during your rate term.	Your energy rate reflects changes in the market.
Budgeting	More predictable from a rate perspective.	Less predictable because the rate can move up or down.
Rate stability	Stable for the rate term.	Changes based on the market.

Both options give you a different way to manage your energy costs. The right fit depends on whether you value rate certainty or prefer a rate that changes with the market.

Explore how fixed and floating rates have changed over time

Looking at past electricity and natural gas rates can help you understand how fixed and floating rate options have changed over time, but past rates aren't an indication of what future rates will be.

Explore Encor’s historical electricity and natural gas rates for a closer look at previous rate changes.

How fixed and floating rates work with Encor plans

Encor offers fixed and floating rate options for both electricity and natural gas, so you can choose the rate structure that fits your preferences.

You can choose:

Electricity
Natural gas
Both electricity and natural gas

If you choose both services, you don’t have to pick the same rate type for each one. You can build your plan based on the options available and what works for you.

And choosing today doesn’t lock you into that decision forever. Encor customers can change or cancel their plan any time, penalty-free.

Looking for large commercial energy options?

Large commercial and industrial customers may have different pricing structures, plan options and energy needs.

Explore Encor’s large commercial energy solutions to find options for your organization.

Explore large commercial energy solutions

Fixed vs. floating rate FAQs

With a fixed rate, your energy rate stays the same for the duration of your rate term. With a floating rate, your energy rate changes based on market conditions.

Fixed rates offer more rate predictability, while floating rates can move up or down over your term.

With a fixed rate, your energy rate stays the same for the duration of your rate term. With a floating rate, your energy rate changes based on market conditions.

Fixed rates offer more rate predictability, while floating rates can move up or down over your term.

Yes. Encor customers can change or cancel their plan at any time, penalty-free.

If your needs or preferences change, you can switch between eligible fixed and floating rate plans or choose another eligible Encor plan.

Start with the option that best fits how you prefer to manage your energy costs.

If knowing your energy rate ahead of time matters more to you, consider a fixed rate. If you’re comfortable with a rate that changes with the market, consider a floating rate.

And remember, you can change your Encor plan later if your preferences change.

It depends on the time period and market conditions. Floating rates may be lower than fixed rates during some periods and higher during others.

For a factual look at past performance, explore Encor’s historical electricity and natural gas rates.

Yes. Encor offers fixed and floating rate options for both electricity and natural gas. You can choose electricity, natural gas or both based on your needs.

Large commercial and industrial customers may have different pricing structures, plan options and energy solutions than residential and small business customers.

Explore Encor’s large commercial energy solutions to learn more.

Fixed vs floating energy rates

Choosing between fixed and floating rates

Fixed and floating rates at a glance

What is a fixed energy rate?

What is a floating energy rate?

Fixed vs. floating rates

Explore how fixed and floating rates have changed over time

How fixed and floating rates work with Encor plans

Fixed vs. floating rate FAQs

What is the difference between fixed and floating rates?

Is a fixed rate better than a floating rate?

Can I switch between fixed and floating rates later?

What if I’m not sure which option to choose?

Have floating rates historically been lower than fixed rates?

Are fixed and floating rates available for both electricity and natural gas?

Are fixed and floating rates the same for large commercial customers?