Do You Have Questions About Switching To An Energy Supplier??
07.11.16 Power Park
What to Know When Switching to an Electric Supplier
Since deregulation transpired in the electric market in the 1990's, consumers have been bombarded by a new industry. They now have the ability to switch their electric supply away from their local utility. What does this mean? What changes will I see? Will this process save me money? What else should I know?
What does this mean?
Energy deregulation is a great opportunity for everyone. For years, the rates consumers paid for their electricity was dictated by their local utility and their local utility only. Now, there are hundreds of electric suppliers in the energy market space that are able to offer consumers electric prices of different varieties depending on their energy needs. What does this mean for you? This means, just like you shop online for your favorite t-shirt, you can now shop online for your favorite electric supplier who offers a price for electricity that fits the needs and budget of you and your family.
What changes will I see?
Before we dive in to the changes you will see on your electric bill, it is good to know that your utility does not change. You will always receive your electricity from your local utility because they own the power lines and infrastructure in your area. Your local utility will continue to field all service calls as it pertains to your electric and will charge you monthly for the delivery of your electricity. On your current electric bill, with no alternate supplier, you will see a delivery charge as well as a generation and transmission charge. Those are the rates your utility is charging you per kWh and to deliver those kWh's to your home. The G & T charge, that is where a supplier comes in. Your supplier's price/kWh will take the place of the generation and transmission (the charge per kWh of electricity you use each month) charge you see on your bill that is currently being charged to you by your utility. Plugged into that little space, will be your suppliers name and the price per kilowatt hour YOU have decided is an economic fit for your lifestyle. Now, your delivery charge and generation charge are two separate lines on your electric bill, they are no longer bundled, so you see exactly what you are paying for both charges. Note: you are not being charged twice for your electricity, the supplier you chose is simply taking over the supply charge on your bill at a different price per kWh then your utility.
Will this switch save me money?
Yes! No doubt switching to an electric supplier saves consumers money. There are rates out there offered by electric suppliers that are well below what your utility is charging you. When looking for competitive supply rates, you want to focus on a few things; the price per kWh, and any additional taxes or monthly charges that are not included in your quoted rate per kWh. Some rates can seem very attractive, however you want to be sure there are no hidden fees that will be tacked on to your billing cycle that will give you a fright when you open up your electric bill.
What else should I know?
When enrolling with a supplier, look for a FIXED term for an extended period of time; 6 months, 12 months, 24 months, 36 months, with no early termination fee. They are out there! Once you choose a supplier, you can relax and know you will not be surprised by your electric bill come the warmer and cooler months of the year. BE MINDFUL of when your rate is set to end with your supplier. It is your job as the consumer to make a reminder for yourself to call the supplier close to the end of your term and check on rates. Does your supplier still have the same rate? If not, what rates are they know offering? Suppliers purchase energy based on market rates, and those rates are always changing. Do yourself a solid and mark the calendar on your fridge or in your smart phone, and call your supplier a month before your rate is due to expire. This will ensure you are receiving the best rate from your supplier and that your rate will not be increased due to market demands at the end of your term.
See, easy peasy.
1) Enroll in a great rate plan that fits your needs by visiting www.ParkPower.com.
2) Mark your calendar.
3) Enjoy your savings.
Park Power NJ Rate Plans
02.11.16 Park Power
Park Power Residential Rate Plans for PSE&G
Park Power 12 Month Fixed No ETF $0.1399/kWh versus PSE&G of PTC $0.12126/kWh.
Park Power 24 Month Fixed No ETF $0.1349/kWh versus PSE&G PTC of $0.12126/kWh.