THE WHOLE PRICE
How to compare electricity plans
BillMellow editorial · Updated October 25, 2026
A lower advertised electricity rate does not always produce a lower bill. Your usage, recurring fees and credit conditions can change which plan costs less. Start with your current bill and each provider’s current pricing document.
Compare the same things
For a simple flat-rate scenario, monthly cost equals usage in kWh × combined variable rate + recurring monthly charges − eligible credits. Include applicable variable supply and delivery charges. If an advertised price already includes delivery fees or credits at a specified usage level, do not add those charges a second time.
Our two-plan comparison calculates this simplified scenario. It does not determine which providers serve your address or replace an official quote. Verify eligibility, contract terms and every charge with the provider before enrolling.
When the lower rate loses
These are illustrative inputs, not market offers: Plan A charges $0.18/kWh with no monthly fee. Plan B charges $0.15/kWh plus $15 per month. At 300 kWh, A costs $54 and B costs $60. At 500 kWh, both cost $90. At 600 kWh, A costs $108 and B costs $105. At 1,000 kWh, A costs $180 and B costs $165.
The plans meet at 500 kWh because the $15 fee offsets the $0.03 per-kWh difference at that usage. A household with seasonal heating or cooling should compare several months of actual usage rather than assuming one month represents the whole year.
Check both sides of a credit threshold
Suppose the illustrative Plan B also gives a $50 credit at 1,000 kWh or more. At 999 kWh, its modeled cost is $164.85 with no credit. At 1,000 kWh, it is $115 after the credit. A one-kWh difference changes the result sharply. Read whether a credit has a minimum, maximum, billing-period rule or other conditions.
Our model supports one monthly credit and one minimum-usage threshold per plan. It does not model credit caps, multiple credit bands or minimum bills. If your offer has those terms, use its complete pricing formula instead.
Subtract the cost of switching
At 600 kWh in the first example, switching from A to B saves $3 per month. Twelve identical months save $36. A $60 switching cost makes the first-year net result $24 more expensive, and takes 20 months of unchanged monthly savings to recover. A contract that ends sooner may never recover that cost.
Know the limits before deciding
Taxes, demand charges, time-of-use periods, tiered prices and future price changes can materially affect a bill. A single selected public-record rate is treated as flat in this tool; it is not a simulation of the entire tariff. Public records can be historical. Always check the source date and current provider document.
Use the usage table to see where a result reverses, review the calculation breakdown, and download the table for your records. Annual figures repeat the entered month twelve times; they are scenarios, not forecasts.