With a floating rate plan, the price per kilowatt-hour of electricity can be determined by the market or other factors that retail energy providers take into account. Because Electricity Rates in the market often change, so do electricity prices. This is good when market prices fall. However, floating-rate plans can be costly if factors such as high temperatures and increased demand drive up energy prices. Floating rates mean that the price you pay per unit of energy can increase or decrease at any time during your time with the supplier. This is often accompanied by, but not always, variable wholesale prices. The key to floating rates is that suppliers can change things at any time for any reason, but you need to be notified when prices go up. If the wholesale price of energy falls, the supplier may pass this price on as a discount per unit of energy. This means you can spend the same amount for less or use a little more energy without paying a higher bill. …