First, I would like to wish all the blog readers a very Happy New Year, and I hope everyone can travel to many exciting destinations this year. I want to share my story about how I got duped by an energy provider that lured me in with an enticing offer of 25,000 miles.
I hope you can take my story and can learn from a mistake I made. It’s almost every day that I receive “a speical offer” from United, American, Southwest, and every other airline under the sun, promising a large chunk of miles to switch energy providers. I’m now ashamed to say that I took advantage of (or should I say was taken advantage of) an offer to earn miles by switching to Energy Plus.
I received 25,000 United miles for switching to Energy Plus, which supposedly advertised energy a competitive “variable rate” each month. In addition, I also received United miles each month for my “inflated” payment.
I figured over time the so called “variable” rate would be close to what my original provider was charging me. After all, prices are determined by supply and demand, right?. Plus, how many people actually really look at their electric bill to see their cost of KHW per unit? I sure didn’t. Almost 2 years later, I am sorry to say, I jumped on this deal back in August 2013.
I can now officially report that I canceled my service last month after doing some of my own research and comparing my costs.
Below I will show in my illustration how I paid 93.25% more in 2015 to switch providers using my actual 2015 results. I did not research 2014, because the pattern is apparent – about 2x regular cost. It appears that my 25,000 United miles were received at a very expensive rate
The moral of the story is to follow some old-fashioned advice: with anything in life, do your homework, and when something seems “too good to be true”, it usually is.
If you also switched energy providers to earn miles, please take the time to look at your electric bill and pay careful attention to the KHW per unit charge.
I would love to hear other experiences too.