The Power of Choice: Why Choosing an Energy Provider Matters

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Your energy provider, like any monthly service provider, should be chosen with care. Commercial energy prices are chosen by the government, but rates vary depending on the supplier. Choosing the cheapest electricity supplier is one option to reduce your electric bill, and knowing your rights and how suppliers work can help you pick the one for you.

Understand your rights:

  • You do have time to cancel a contract if you sign up with a supplier and then change your mind. After signing up with the new supplier, you will get a mail confirmation from your local utility, and you have a full week, seven days, from the postmark date to cancel.
  • You must be given information on a supplier’s generation sources and their created by-products.
  • Once you’ve switched suppliers, the only noticeable difference will be on your monthly bill. It will now show your new supplier and rate. Also, the utility company you use should continue their services; they will still supply electricity and take care of repairs.
  • It may take some time for the monthly bill to change, but if your third bill from the new supplier hasn’t changed, call the supplier to make sure your account is problem-free.

Important details to consider when choosing a supplier:

  • Those who are thinking of switching their electricity supplier need to focus on the rate offered by the supplier, and know the terms of a switch. The Pittsburgh Post-Gazette lists the terms, including: the length of the contract, if the offered rate is fixed or variable, and any fees that would arise if you cancel the contract early to change suppliers.
  • Be aware than not all suppliers use savings to bring in new customers. A supplier may charge more for selective services in order to use that extra inflow to fund other departments and developments. Don’t assume the prices given to you reflect any deal unless specifically told.
  • Some suppliers may advertise mixing fixed and variable rates, not giving an accurate portrayal of their fees. A variable may start low, but they increase much more than decrease. There are fixed rate plans, but after they expire the fixed rate turns into a variable rate, with increasing rates. It’s unlikely the supplier will warn you of the expiration, so keep an eye on the length of your plan.

Many people change energy suppliers as a way to lower their electric bill. Even though commercial energy prices may be above your grasp, there are other ways help determine who you should switch to. You may want to not only pick the cheapest electricity supplier, but also choose a supplier whose contract and intentions are clear.