Choose Your Energy Supplier and Save Money
(Photo credit: (vincent desjardins))
“Electric choice,” or the option to choose the company that generates and provides the electricity you consume, allows you to possibly save money by selecting an electric generation supplier that offers a lower price than that of your local utility company. Here are some things to know when comparing suppliers.
Not All States Offer a Choice
Each state has different regulations. Most states grant consumers the right to obtain their electricity from a selection of licensed companies in their state. Find out if electricity supplier choice is offered in your specific location. You can check state utility commissions and current suppliers to know if your state offers electric choice. Find a list of electric generation suppliers in your area.
It’s Important to Compare Offers
If the state offers electric choice and there are available suppliers in your area, then you can shop around for the ideal type of service and price that suits your needs. Some of the most important things to take into consideration include the combination of quality service and reasonable price, reputation of the supplier, availability of a budget billing plan, use of renewable energy sources, contract terms and the place where the energy is produced.
To determine if a supplier offers a lower rate than your present electric utility, you may compare the generation price of the supplier to your current electric bill’s “price to compare.” This encompasses the price of generating 1 kilowatt of energy. By comparing both prices, you can see which is more affordable. Your current supplier’s price to compare can be found on the most recent billing statement while the prospective supplier’s price to compare can be found on their website.
Energy Providers Offer Different Plans
Since suppliers offer different terms, it’s best to contact the provider and ask detailed questions. Inquire about rates. Try to find out about all fees including generation, transmission, distribution and fuel charges. There might also be monthly charges and other miscellaneous fees.
You can save a considerable amount of money by selecting a competitive electric supplier. Many top rated energy companies today offer competitive rates, and you can choose the best deal by comparing energy plans and rates in your location.
Ask if the energy provider offers variable or fixed rates. Fixed rates are consistent throughout a specified term while variable rates are subject to change. Don’t forget to ask about contracts and penalties. Some suppliers may penalize consumers for early cancellations. You should also find out if credit history is a major factor. Some suppliers may require a deposit from customers with bad payment history.
Read the Contract Thoroughly Before Signing
Make sure that you completely understand the terms and conditions before signing a contract. Don’t give out your account number until you’re ready to sign.
Having a choice means that you can make a decision based on your preferences and specific needs. Online comparison shopping is certainly an effective way to find the best energy company that offers the best deal. Businesses and residential consumers in North America can compare and save on energy rates by using www.SaveOnEnergy.com. By comparing energy providers, you can obtain competitive rates from various reputable suppliers.
Ruth Samuels is a professional financial advisor. She blogs frequently and enjoys helping her readers save money.
Category: Saving Money
