Look Beyond the Cheapest Electricity Supplier

If you live in a state with a deregulated electricity market, you may be tempted to switch electricity suppliers by the promise of cheap electricity. However, before you sign on the dotted line with what appears to be the cheapest electricity supplier, you may want to do a bit of homework to make sure that you are actually getting a good deal.

First of all, you will want to know if your overall cost of electricity will be lower with the new electricity supplier. You may be quoted a low rate, but you will want to know if that rate is fixed, or if it varies for any reason. Is it higher during different seasons, or at different times of day? Does the rate depend on how much electricity you use? And does the electricity supplier have the right to change the electricity rate for any reason during the term of the contract? You will want to calculate whether you will actually save money based on your pattern of electricity use, and find out whether there is a risk of your electricity rates going up over time with the new supplier.

You will also want to learn about the terms of the contract. How long is the contract period? Is there an early termination fee if you cancel your contract before the term is up? And what if you move away from the supplier’s service area before the end of the contract? You may want to ask the supplier for a copy of their standard contract, so that you can make yourself familiar with all of the contract terms before making a decision.

Finally, you may have other considerations based on your personal preferences. For example, you may want to know what sources the supplier uses to generate their electricity, and whether there is any option to receive electricity from renewable sources. If you have any particular characteristics that you desire in an electricity supplier, be sure to ask about them when researching your options. If you do your homework, you may be able to find a cheap electricity supplier that can meet your electricity needs.