If you live in a deregulated area, you can find better electricity rates from alternative power suppliers than your local utility company. Your utility bill will still be billed for delivery and infrastructure charges, so nothing changes.
The switch is a simple process that can be done without anyone visiting your home. It just takes a few days for everything to be handled by your new supplier and the utility.
Shop Around
In states with electricity deregulation, you can choose where your energy comes from. That includes the electric company Mesquite, TX, that generates and distributes your home or business power and competitive electric service companies that offer plans at different prices or with various features like green energy.
When shopping around, you’ll want to check out the terms of each plan – including its contract length, if there are any cancellation fees, and whether it offers prepaid gift cards or other incentives as part of its signup process. You’ll also want to determine if it’s a fixed or variable-rate plan, which means your price will change monthly based on energy market conditions.
Another important factor is determining if you’ll need to pay an upfront deposit, which may prevent you from getting the right plan. Lastly, it’s worth checking if you can cancel your plan without paying any early termination fee, which can offset any savings from switching to a new provider with a lower rate.
To start your search for an affordable electricity rate, enter your ZIP code in our marketplace and explore rates in your area. Then, filter by a specific ESCO or other features like contract length, introductory rate, and more to find the best plan for you.
Compare Plans
Most suppliers require a contract that lasts for three to 36 months, but there are alternatives. You can shop around again before your contract expires and avoid being re-enrolled into an auto-renewal plan with a high rate. If you have a supplier, check your electricity bill for the energy supply price per kilowatt hour (for electricity) or per thousand cubic feet (for gas) and compare it to alternative suppliers’ promised rates.
Some providers offer plans with straightforward rates based on a simple cost per kWh, while others use complicated pricing structures. For example, time-of-use plans have varying rates depending on the time of day, which can significantly affect your total energy costs.
Also, some electricity providers require a deposit and enrollment fees when you switch to their service, so be sure to ask about these charges before signing up. Typically, the deposit will be returned when you switch to a new provider.
If you move into a new home and must change your supplier, be aware that your electricity provider may have put a hold on your account because of money owed to them. To break this hold, you may be asked to provide a copy of the lease, an affidavit from your landlord, and a few recently paid utility bills from your previous address.
Compare Fees
Besides the supply rate per kilowatt hour, find out what other fees a provider charges. For example, some providers require a credit check or offer an upfront deposit. Ask for a breakdown of these charges and ensure they won’t offset the savings you expect to gain by switching.
The last thing you want to happen is for your alternative energy supplier to “slam” you. Slamming is when an alternative electricity provider suddenly switches you to their service without your permission, which is against the law. Check your state’s consumer protection department for more information about your rights and responsibilities when shopping for a new electricity supplier.
Once you’ve found a plan that suits you, the switch shouldn’t take more than five days or less. You won’t experience power interruptions during that time as the switch is done remotely. Your new supplier will contact your utility company and old supplier to coordinate the switch, so you don’t have to worry about anyone coming to your home.
Make the Switch
Switching electricity providers allows you to access new plans and rates. Your utility company continues to deliver electricity, but you will receive a separate monthly bill from your retail energy supplier for the new plan and rate. It’s a simple process that usually takes five days or less, and no pipe changes or home visits will be required.
Some retailers offer signup bonuses or rewards programs, such as free or discounted home energy audits, bill-bundling with home telephone providers, and even prepaid options. Check with each provider to see what’s available in your area.
You can also choose an indexed rate plan that adjusts your kilowatt-hour price based on a commodity market index. This is more complex and carries more risk, but it can sometimes save you money.
When you switch, your new retailer will contact the electric supply company (your utility) and inform them about your service change. If you owe money on your current account, your old provider may place a “Switch Hold” on your home until you pay up what you owe. If that’s the case, you can still change electricity suppliers if you can work out a deal with your old one to cancel the hold. It’s important to ask about this before you switch.
