Live in Texas, Massachusetts, Ohio, or Pennsylvania? What about Maryland, New York, or Illinois? If so, you might reside in a deregulated energy market and be able to shop for electricity rates and plans offered by a local energy provider.
It takes — on average — 4 minutes to signup for a new plan on our website.
New to deregulation? Energy deregulation is the process that allows companies known as energy providers to offer electricity supply related services. Instead of the utility having control over all aspects of the energy process (from generation to customer service), energy providers open the market up to competition. Competition can encourage lower prices, better service quality, etc., because if a home or business isn’t happy with the services of one provider they can quickly and effortlessly switch to another provider.
What should I know when shopping for electricity?
Finding the right energy provider can be a daunting task. Depending on where you live, your options could very well be endless. Do you want a plan with flexible or variable pricing? What types of services are you looking for? Do you want a plan with green energy? What if you run a small business– can you benefit from energy deregulation too?
All of these questions are valid and very important to answer before signing any energy provider contract. To start, we’ve put together a few answers to some basic energy choice questions to point you in the right direction.
How do I shop for electricity rates and plans?
Before you signup with the first energy provider you find, there are the top 5 things that you should know:
- While your state might be deregulated, the area in which you live might not. For example, while most of the state of Texas is deregulated, the major city of Austin is still regulated. Homes and businesses in Austin cannot switch to another energy provider.
- Many energy providers share their current plans and rates on electric choice websites like ElectricChoice.com being one of the most trusted and well-established. All you need to do is enter your zip code on our site and you’ll see a list of plans, rates, and promotions available in your area.
- Some energy providers only offer services to residential consumers, while others only offer services to commercial consumers (large, medium and/or small). For businesses, it might be best to contact us as we can generally negotiate directly with REPs to get you a better deal than what you see online.
What type of services/plans do energy provider offer?
Energy providers offer a wide range of different plans and services. Why? Well, they have to in order to keep their customers satisfied. While we can’t comment on every single plan offered by every energy provider on the market, we can tell you a bit more about the general types of contracts you can expect.
Service Length: It’s possible to receive service anywhere from month-to-month to three years (and even beyond).
Green Energy: Some energy providers — Green Mountain Energy being of the biggest — offer energy plans generated from renewable resources.
Rates: These are dependent on the market in addition to many other factors. Rates can include fixed, variable and/or indexed (amongst others). While some rates might appear very low, be sure to read the fine print to understand exactly what you will need to pay for. Sometimes, the amount only applies to a particular number of kilowatt-hours and if you exceed that amount, you will end up paying much more. Always read the fine print before signing up for any service.
Other: Some premium energy providers offer auxiliary tools and products like smart thermostats to connect with their services. These add-ons can help you to better manage your energy consumption and reduce your overall energy bill.
Will my service be interrupted when I sign up for electricity?
Many consumers worry that by switching to a different energy supplier that their electricity will get cut off or suddenly stop. This just isn’t true. The transition is seamless, in fact, you won’t even notice that anything is different or has changed! Your electricity will continue to work, just as before. The only difference now is that you will receive a bill from your new provider moving forward instead of the old one.
Once I switch, which company do I pay for my new electricity?
The start date on your new contract (or as otherwise defined by the energy provider) defines the day that the supply of your electricity will be provided by your new energy provider. That being said, your utility remains responsible for providing delivery and maintenance services to all consumers.
When you receive your bill, you will notice that it includes the charges from both companies: your energy provider and your utility. Now, here’s where things can get a little tricky. Different energy providers and utilities send bills in slightly different formats. Should you have any questions regarding your bill, it is best to contact the provider or utility directly.
The good news is that the really great energy providers will provide a glossary of terms, or even a sample invoice to help their consumers better understand who they need to pay and why.
Will I have to buy a new meter or other new equipment?
No, it’s not necessary to make any changes to the equipment on/in your home or business.
If you are moving into a new home, you also don’t need to change your meter or purchase any other equipment. However, you need to keep in mind that it does take a few days for both the utility and service provider to start service.
Will a deposit be required when signing up for service?
Not necessarily! For customers with credit issues, deposits can be frustrating and in some cases impossible to provide. Fortunately, we have a variety of no deposit electricity options. There are some energy providers out there that don’t require deposits in order to sign up for services. Quite often in these cases, the customer is also required to sign up for a pre-paid electricity plan. This means that the customer needs to pay in advance for their services, however, this amount is nowhere near the cost of a standard deposit.
That being said, there are energy suppliers that do require deposits from all customers in order to receive service.
Are there any fees for switching electric providers?
Some energy providers include cancellation or early termination fees. These fees only apply if you want to end the contract before its end date. Sometimes these fees are a flat fee or include a fee multiplied by the number of months left in the contract. Be aware that additional fees might also apply! Again, this is why it is so important to read all the details of the plan or contract before signing.