These days, lots of households have felt burdened by increasing energy prices. Texas, Pennsylvania, Ohio, and a handful of other states have deregulated their consumer electricity markets. Deregulation gives consumers the freedom to choose a power provider.
Does your state allow you to shop around for power providers? If so, you already enjoy an excellent opportunity to reduce your power bills. The U.S. Energy Information Administration reported that typical consumers could save hundreds of dollars yearly by switching their power company.
A few minutes of research can help you reduce your bills and feel more satisfied without changing anything but your power provider. Before you switch, find out how to compare electric companies and why this might be the perfect time to take action.
How to Select the Best Electricity Provider for Your Household
For most households, the most challenging part of the process of switching to a new electric company consists of choosing between several competitive providers to select the one that best meets their needs. However, websites and apps make it easy to compare electricity plans and prices within seconds.
To make the most of a comparison website, consider these tested suggestions to ensure a satisfying and budget-friendly choice:
- Understand your electricity bill and habits: Begin by understanding how much you currently pay per kWh, plus any additional fees added to the bill. Also, consider the time of day and seasons when your household consumes the most power. This information will help you compare prices and spot any plans with features that may offer particular benefits for your family.
- Consider the history and reputation of new providers: Look for established providers with a proven track record. Check online reviews to see how the provider has satisfied past customers. Rate comparisons won’t tell you anything about customer service, but reviews typically will. Check the provider’s license on your state’s utility commission website for extra assurance it’s authorized to market electricity in your state.
- Carefully review the provider’s terms: Study the fine print to ensure you don’t sign up for unpleasant surprises. For instance, determine if the rate offers a guaranteed, fixed rate or a variable rate that can change during the term. Also, find out if the plan charges penalties for dropping out early.
Why Do Electricity Provider Customers Switch Companies?
People who switch plans make a move for several reasons. Common motivations for changing electricity providers include these:
- Most people look for a new power company because they’re dissatisfied with their current provider’s rates or have felt disappointed because of an experience with customer service or billing.
- Some folks had variable rate plans and wanted more control over the budgets. They hope to lock in lower rates with a fixed-rate option instead of gambling on fuel prices.
- Others hope to benefit from special incentives. Some families can adjust their schedules to benefit from promotions, like cheaper night or weekend rates.
Many consumers prefer to reduce their carbon footprint but cannot install a renewable energy system at home. These households can still do their part to contribute to green energy by choosing a plan that guarantees power generation comes from renewable sources such as solar or wind.
Why You Shouldn’t Wait to Compare Electricity Prices
As a prudent consumer, you may feel hesitant because you’re concerned about disruptive changes you may experience when you enroll with a new energy provider. Consider this brief list of things that will and won’t change:
- When switching providers, your rates, customer service, and billing will change. However, your local utility will still deliver electricity to the same equipment you used with your previous electric company.
- The utility will also continue to service equipment and respond to power outages. You should experience a seamless, unnoticeable transition between providers.
- When you see your bill, you will still see the familiar extra charges such as delivery fees and taxes.
A competitive electricity market can help you save hundreds of dollars yearly on your electricity bill. Online comparison sites let you view plans and rates from local providers. These comparison websites won’t impose any obligation to switch, but they should offer a big incentive. Most of all, you should see the most significant change when you open your next power bill.
