Energy contracts are easy to come by when you’re starting a business or moving into a new residence. But each energy contract is different as the offer they provide you can vary drastically. Some energy contracts are better than others as they provide you with a sufficient amount of energy for a lesser price. Utility bidder can help you find some of the best energy contracts in the market.

A lot of thought needs to be put in when considering a new electricity contract. There are many factors to consider, such as rates, fees, length, terms, and conditions. All these factors can have a huge impact on the total energy costs that you need to take care of per year.

The Difference Between Long-term and Short-term energy contracts

Long-term Energy Contracts

Long-term energy contracts can be signed for one to four years. The most common length for an energy contract is usually twelve months, twenty-four months, or thirty-six months. These contracts have a rate that never changes, even if the market price for electricity changes. 

The Advantages of Long-term Energy Contracts

Predictable and Stable Energy Rates

In long-term energy contracts, you have to pay your suppliers a fixed rate for the duration of the contract. This means that even if the market rates drop or increase, you will not have to worry about the changes in the supply rate, or you won’t even need to renew your contract. Having the luxury of knowing the exact rate of your energy expenses makes it easier for you to predict how much budget should be allotted for it.


In long-term contracts, you spend less time renewing your contracts or shopping for better rates. Once the contract is signed, you will have to stick with it. Unless you wish to cancel the contract; however, doing this will cost you a lot of money.

Short-Term Energy Contracts

Short-term energy contracts are usually a year long. The most common types of short-term energy contracts last three months, six months, and can even be one month long. This mostly depends on the type of contract that you chose. In a short-term energy contract, the rates can remain the same but can even change depending on the market price. Most businesses do not opt for short-term energy contracts. But households or small businesses prefer these types of contracts as they do not have a large sum of money for long-term contracts and short-term contracts make it easy for them to pay their bills.

The Advantages of Short-Term Energy Contracts

Changing to a Better contract

Since most short-term contracts are month to month-long, they can easily be changed from one supplier to another. Thus, you can get the best market rates.


If you move around a lot, then short-term contracts are the best option for you as they can easily be cancelled without having to pay a large fine.


The type of energy contract you sign depends on your living conditions or your business. Long-term contracts are considered the best option for businesses, while short-term contracts are better for households or small shops.