If you’re living in a deregulated electricity market and have been using the same energy supplier for the past couple of years, then it might be time to shop for a new electric company. When you take time to compare electric companies, not only is there a good chance you will end up with a lower electric rate, there may be additional benefits you have been missing out on.
Most customers want to lock in the lowest rate possible. However, there is a growing demand for power that is generated from 100% renewable energy sources. Renewable energy sources such as wind, solar, and biofuels are considered to be more environmentally friendly than conventional sources such as oil and coal. More electric companies are rising to meet this demand by providing energy plans that generate electricity from 100% renewable energy sources.
Electric companies can specialize in different areas. You may find getting the lowest electric rate isn’t always a top priority when you compare electric companies. Electric companies can have added benefits attached to an energy plan that may make it more enticing when compared to the electric supplier just offering the lowest rate.
So, what are a few things to look for when comparing electric companies? We take a look at more than just the electric rate advertised.
Energy choice is spreading across the country. As more states move to deregulate the electricity market, we are seeing an increase in electric companies providing supply services to customers in these states. However, not all electric companies are built the same. Some energy suppliers have gained a solid reputation through the years by providing quality service, along with a strong financial backing. Choosing a new energy supplier that has not been around for too long may end up being costly.
It happens way too often. A new energy supplier comes along offering customers an electric rate lower than their competitors. This rate is too enticing for the customer to pass up. Energy suppliers will often do this to increase their market share and gain more customers. However, if the energy supplier is not hedging their risk correctly and energy prices increase, the energy supplier may not be able to honor the low rate. When this happens the energy supplier may declare bankruptcy, leaving the customer stuck with a much higher rate.
Additional Benefits from Electric Companies
Selecting a new electric company may come down to more than just the supply rate. Electric companies can have added benefits to the energy plan to increase their value. An example of these added benefits includes products such as a smart thermostat or an awards program that can help you save while shopping for the brands you love.
Smart Thermostat
Installing a smart thermostat can help keep energy consumption in check. Smart thermostats can be programmed to automatically reduce energy consumption during times of peak demand. Consuming less energy during peak times will be rewarded by the electric company by a credit on the electric bill.
Rewards Programs
A rewards program can also act as a nice little add-on to an energy plan. Some rewards programs offer discounts to customers on selected name brands or even discounts on restaurants while dining out. Not too bad to have when you’re saving on energy at the same time!
Terms and Conditions
Comparing electric companies comes down to much more than just the electric rate that is shown to you. Every customer should read the terms and conditions of an energy plan before signing up. The terms and conditions will include all additional charges that will be included besides the electric rate itself.
Reading and understanding the terms and conditions will save you from unwanted surprises that can show up on the electric bill. Electric companies may pass additional charges as separate line items on the electric bill. By the time you add up all the charges, you will quickly realize the energy plan is more expensive than the higher rate from the other electric company that you overlooked. Don’t let this happen to you! When you compare electric companies, make sure to read the fine print.
Renewable Energy Options
If you’re constantly signing up for the lowest rate, then you may not be aware of how the power for those plans is generated. Generating power from sources such as oil, coal, and natural gas is much more cost-effective than renewable energy sources. This allows electric companies to offer lower rates than most renewable energy plans. However, if the source from which the electric company generates power is a concern to you, then you may consider going with a renewable energy plan.
Due in large part to increasing regulations outlined in a state’s Renewable Portfolio Standards (RPS), electric companies are increasing the percentage of power generated from renewable energy sources. This is leading to more energy suppliers offering customers energy plans that are 100% renewable. If you’re thinking of going green, then now is a great time.
Make the Right Energy Choice
There are a few websites that help customers compare electric companies and choose the lowest rate. While we recommend shopping around, we are happy to provide top-notch customer support from energy advisors with over 10 years of experience in the energy sector. Our goal is to not make a quick buck but to build relationships with our customers so they have a reliable source they can trust. At ElectricRateSelect.com, we will help walk you through the process and find the right electric company that best suits your needs.
