Comment Re:No More Deregulation (Score 1) 551
The lock in ends up being higher than the regulated rate (This was kept for those who didn't sign up).
Basically, the same way that mortgages work at the bank. The bank will offer to "lock in low rates" implying that they're doing you a favour and then when the five years is up you realize that the cost of borrowing was significantly more than if you had chosen a floating rate.
Any time you wish to absolve yourself of risk, you'll find there are people who are more than happy to profit by taking that risk over for you. Just be glad if they don't disappear in the night when real trouble *does* come along...