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What Happens if My Electricity Contract Expires?

by Garrett Faden

In this blog, we’ll discuss what happens when your electricity contract expires without having a new contract set to replace it and how to tell if you’re in or out of contract.


Your Power Will Not Be Shut Off

There is a common misconception among the public that your power will be immediately shut off the moment your electricity contract ends. That is not true. There are 2 things that can happen once a contract ends when you haven't signed a new contract to replace the old contract.

  1. Your electricity rate switches from your old in-contract rate to a higher variable rate (also known as a “hold-over rate,” “month to month rate,” or an “out of contract rate”). This means that you remain with your existing electricity company at a rate of their choosing. Out of contract rates are typically higher than the current in-contract rates.

    Out of contract rates remain fixed (it will not change) over the course of that month. Around the beginning of the next month, the rate can be raised or lowered to the discretion of the electricity company. This process will recur indefinitely until you sign a new contract with any electricity company.

  2. (Rare but possible) Your electricity rate remains the same as it was while you were in contract until the end of your current billing cycle. For example, let’s say your 12-month contract ends on the 20th, but your billing cycle usually ends around the 28th of every month. It’s possible that your entire electricity bill will stay under your in-contract rate even though the last day of the billing period (the 28th) was past the official end date of your contract (the 20th).

    Whether that happens or not is up to the electricity company you’re currently with. If you do find yourself in that situation, the out of contract rate situation mentioned in #1 will take over on the next billing period.

How Do I Know If I'm In or Out of Contract?

Ok, so you understand what happens if your electricity contract lapses, but how do you determine if you're in or out of contract? Here are a few ways to tell.

  1. Your contract end date is usually available on your bill. It may be hard to find but be sure to look closely. Look out for the words “Your current plan is effective through..”, “The term on your plan ends…”, or “You have a contract valid from…”, etc. Please note, if you’re already out of contract, your bill will not list any contract start or end dates.

  2. Log into your electricity company’s member portal

  3. Log into your Energy Ogre account and look under “Current Contract”

  4. Call your electricity company or Energy Ogre

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Contract Expiration Reminder

I’m an Energy Ogre Member and I’m Out of Contract. What’s Going On?

Because of current market conditions, with increased rates and limited options, Energy Ogre has determined that keeping certain members in a monthly hold-over rate with their current provider is the most cost-effective option for them at this time. New contract rates that have been available are either higher or equal to out of contract rates. 


Rest assured, we are keeping a close eye on the market and will ensure you’re enrolled in the best possible plan. You will only be on the monthly rate for a brief period of time, and you will not experience any disruption of service during this transition.


I’m Not an Energy Ogre Member and I’m Out of Contract. What Should I Do?


Current market conditions have contributed to a market floor we’ve never seen this high before. Hold-over rates are set ahead of time so it’s possible your current out of contract rate isn’t too bad. However, please remember that your electricity provider possesses the right to change your out of contract rate at the start of every month. That means the rate will most likely increase as the market continues to rise. That’s why it’s in your best interest to sign up for a new contract instead of staying at an out of contract rate forever.


Don’t know which contract to choose or even where to start? Energy Ogre is here to sift through the fine print and analyze your actual usage patterns to pick the best contract available for you!


Interested in signing up? Press the button below!


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