In this post, we explain the rationale behind our "blend and extend" savings tactic. This innovative idea ensures members continue to pay the lowest rates available by capitalizing on a historic, multi-year low in electricity pricing.
Please keep in mind that not all members are eligible for or will benefit from a blend and extend contract. This strategy is only used when the new contract's rate is lower than the current rate, effectively increasing members' long-term savings.
Innovative Idea Benefits Members
Thanks to an innovative idea, Energy Ogre's experts have implemented another solution that allows us to keep our members in the lowest possible plans for longer to maximize their savings. Taking advantage of historic, multi-year lows in electricity pricing, we've acted to "blend and extend" some members' contracts. What does that mean exactly?
Blend and Extend. verb
Definition: Restructuring a member's current contract (without paying any penalties or fees) and placing them in a new contract with a lower rate for a longer duration, maximizing and securing their savings for the foreseeable future
Each year, our team projects where market prices will be throughout the year based on historical data and current market trends. This data helps us select the best, lowest-priced plan for you when the time arises, whether you're a new or existing member.
Throughout the year, we constantly conduct market checks to ensure our members are paying the best rates available. Recently, the results of those market checks led us to add another tool to our tool belt--blend and extend.
A blend and extend is a restructuring of a member's current contract (without paying any penalties or fees) that places them in a new contract with a lower rate for a longer duration. This maximizes and secures their savings for the foreseeable future.
Moving forward, we'll be looking for opportunities to restructure member's plans when we can guarantee even more savings than we initially thought possible. Please keep in mind this restructuring does NOT mean you'll have to pay an early termination fee (ETF).
If your plan ever gets restructured, then you will remain with your current provider but receive a lower rate that is effective with the new contract start date. Essentially, nothing changes except the price you pay, which decreases. Go ahead; it's okay to happy dance... we won't judge.
If your contract is adjusted in this way, then you'll receive an email from us with all of the details. Don't worry... the switch will happen automatically, and you won't have to take any action.
So is it a Renewal or a Brand New Contract?
Your previous contract, which may have been set to expire in 3-4 months, ends once it is blended and extended. Depending on the original contract end date, those remaining months will be added to the term of the new contract. Your new contract with the lower rate will begin right away and continue for what could be 14-15 months.
Look at it this way--you get a better price now that is locked in for the rest of the original contract plus the next 9-12 months. Effectively, this ensures greater savings for the foreseeable future.
Who doesn't love immediate, guaranteed savings?
Who's Eligible for a Blend and Extend?
In essence, most members could experience a blend and extend at some point. But that will only happen when Energy Ogre determines they will save money immediately and in the long-term.
As with all subsequent (or renewal) contracts, members do not need to approve these contracts because they've already entrusted Energy Ogre to manage their account. In fact, that is exactly what they pay us to do.
This blend and extend tactic is one of the many benefits of being an Energy Ogre member. These opportunities are not offered or advertised; they must be specifically requested from a provider who has no obligation to accept. Our data allows providers to see the benefit of accepting, which means we are able to save our members even more.
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