XOOM Energy Update - Current Market Conditions
January 20, 2014
Many areas across the country, including the Northeast, have recently experienced colder than normal weather. Wholesale energy prices have spiked during these cold periods impacting many in the industry, including XOOM Energy as discussed in various leading trade publications. For instance, North American WindPower describes in a recent article how plummeting temperatures have caused wholesale energy prices to soar, leading to increased prices for consumers (North America WindPower). Bloomburg.comalso described how record-low temperatures caused energy prices to increase due to the pipelines freezes that occurred during the polar vortex on January 6th and 7th of this year.
The thousands of XOOM Energy customers who chose to enroll on a fixed rate contract have been protected from these high wholesale energy prices, with many enjoying rates currently under the utility rate. By choosing a fixed rate product, customers get the stability and peace of mind knowing that their rate will not change for the duration of their contract – regardless of the changes in the market, as they are protected from the volatility caused by the historic weather patterns.
A variable rate plan allows customers to purchase energy at market-based prices that change with market fluctuations. While a variable rate is subject to price increases or decreases, it may help customers realize the lowest possible cost in the market. Plus, with a variable rate plan, there is no long-term commitment or early termination fee. Customers may even switch to a fixed rate plan at any time.
At XOOM Energy, we work to be upfront and honest with our customers when it comes to their rates. Before enrolling with us, we encourage customers to educate themselves on the differences between a variable and fixed rate contract through our plan descriptions, FAQs and educational video– giving them the benefits of each product option. Customers should know and understand the differences between the two and then make the choice that is best for them.