Trystan Casey
Pennsylvania has a deregulated utility market, allowing consumers to shop around and switch electricity suppliers. The Public Utility Commission (PUC) helps protect consumers in this competitive and often confusing market by requiring electricity suppliers to disclose the main stipulations of their plans, such as rates per kWh, fees, and early termination penalties. When switching electricity suppliers, consumers should review their current contract for any financial penalties and then contact their electric utility to request a return to the default service. The new supplier will then contact the old one to handle the changeover.
| Characteristics | Values |
|---|---|
| Switching providers | Consumers in Pennsylvania can switch their electric suppliers at will |
| Time taken to switch | 11 to 40 days |
| Fees | Utility providers don't charge fees for customers to return, but some charge penalties for early contract termination |
| Before switching | Review your current contract for any financial penalties and compare electricity plans and providers |
| After switching | The new supplier will contact your old supplier and handle the changeover, then contact you by mail to confirm |
| During outages or emergencies | Consumers can contact their local utility provider even after switching |
| The Public Utility Commission (PUC) | Directs electricity suppliers to disclose the main stipulations of their plans, such as rates per kWh, fees, and early termination penalties |
| PAPowerSwitch | A way to ensure safe and reliable service at reasonable rates |
| Pennsylvania programs | There are programs designed to help with electric costs, such as the Alternative Energy Portfolio Standards Act (AEPS) |
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What You'll Learn
Research different suppliers and plans
Pennsylvania has a deregulated utility market, which means that consumers are free to shop around and change their electric suppliers at will. There are over 100 electricity providers licensed by the Pennsylvania Public Utility Commission (PA PUC).
Electricity suppliers range from small municipal-based companies to large national providers. Smaller municipal companies are local, so you can generally expect a faster response to outages or issues, and your money stays in the local economy. Larger companies typically offer more member benefits and larger areas of service but less plan customization.
When choosing your supplier, you’ll need to decide whether to go with a fixed or variable rate. Learn more about the pros and cons of each, and get help deciding which rates and terms are the best fit for you.
You can use websites like PAPowerSwitch, PA Energy Ratings, and SaveOnEnergy to compare electricity plans for your home in Pennsylvania. These websites allow you to enter your zip code to compare electricity plans and suppliers in your area.
Before switching suppliers, be sure to review your current contract for any early termination fees or other financial penalties.
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Review your current contract for termination fees
When reviewing your current contract, it is important to look out for any termination fees or early cancellation fees that may be stipulated. These fees can vary widely, ranging from $0 to $300, and are dependent on the type of consumer you are—commercial consumers typically have higher early termination fees.
The contract you signed with your current electricity provider will outline the length of time you are bound to receive services from them. If you are considering switching providers before the end of your contract, you may be liable to pay a termination fee. This is why it is important to carefully review your contract and be aware of any financial penalties.
There are two main types of early termination fees. The first is a flat rate, which is a set fee that you will need to pay regardless of how much time is left on your contract. For example, if you are charged a $100 early termination fee and you cancel your services a day before the end of your contract, you will still need to pay the full $100. The second type is a monthly rate, which depends on how many months are left on your contract. For instance, if the early termination fee is $25/month and you have three months left on your contract, you will need to pay $75.
Electricity providers are required to disclose the main stipulations of their plans, including early termination fees, in a mandatory Electric Supplier Contract Summary statement (ESCS). This should provide an easy-to-understand summary of the plan's basic terms. You should also expect to receive two notices from your supplier before your contract ends, warning you of the upcoming expiration date. The first will be sent 45 to 60 days prior, and the second will be sent 30 days prior.
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Compare fixed and variable rates
Fixed-rate plans offer price stability by locking in the same electric rate per kilowatt-hour (kWh) for the duration of your contract, which typically ranges from 6 to 36 months. This option is ideal if you want a consistent bill that is protected from market fluctuations.
Variable-rate plans, on the other hand, offer a low and appealing introductory rate for the first month, after which your rate can change with no restriction on how high you can go. Your rate will fluctuate based on market conditions, which means you may benefit from lower costs during certain periods but face higher bills during peak times. Variable-rate plans are more flexible as they do not require a contract, allowing you to switch plans at any time.
When comparing fixed and variable rates, it is important to consider your usage habits and preferences. Fixed rates offer predictability and protection from market changes, while variable rates provide the flexibility to switch and the potential for lower rates during periods of low demand.
To find the best rates in Pennsylvania, you can use rate comparison websites such as PAPowerSwitch, EnergyBot, ElectricityRates.com, and Choose Energy. These sites allow you to enter your zip code and compare electricity plans and rates from various providers. You can also check customer reviews and ratings to gauge provider reliability and the terms of the contract, including contract length, cancellation fees, and other terms.
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Contact your new and old supplier
If you're switching electricity suppliers in Pennsylvania, you don't need to worry about contacting your old and new suppliers—the new supplier will take care of this for you. They will contact your old supplier and handle the changeover.
However, before you switch, it's important to review your current contract to see if there are any penalties for early cancellation. If you're unsure, call your current supplier to clarify. Their phone number can be found on your bill. Your disclosure and contract summary should also outline the price you agreed to pay when you enrolled with your supplier. If you have any other questions, your supplier can help.
Pennsylvania regulations require suppliers to provide up to two years of historical pricing data upon a customer's request if the supplier is offering a variable price. For residential customers, all applicable taxes are included in the price presented by the supplier.
After you've switched, your new supplier will contact you by mail to confirm your choice.
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Understand billing cycles and rates
Understanding billing cycles and rates is crucial when choosing an electric provider in Pennsylvania. The state's deregulated energy market allows customers to choose their energy provider based on rates and energy usage patterns, with providers competing to offer the lowest rates and most customer-centric services.
The first step in understanding your billing cycle is to check your current rate and usage. Look at your recent electric bill to note your rate per kilowatt-hour (kWh) and monthly electricity consumption. This establishes a baseline for comparing alternative plans.
Pennsylvania's average residential electricity price is 18.01 cents per kilowatt-hour, resulting in typical monthly bills of around $148.89 for an average consumption of 846 kWh. This price is slightly above the national average, but the deregulated market offers customers the opportunity to find more competitive rates.
When comparing rates, it is essential to understand the difference between fixed and variable rates. Fixed-rate plans lock in your electricity supply rate for the duration of your contract, typically ranging from 6 to 36 months, and offer predictable bills and protection from market fluctuations. On the other hand, variable-rate plans can change month-to-month based on market conditions, offering potential savings during low-demand periods but possibly leading to higher bills during peak times.
Additionally, be sure to review all fees associated with a potential new electricity provider. These fees can include the customer charge, demand charge, distribution charge, and franchise fee. Understanding these billing components will help you make an informed decision when choosing an electric provider in Pennsylvania.
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Frequently asked questions
Consumers in Pennsylvania can shop around and change their electricity suppliers at will. You can compare electricity plans and suppliers online and review your current contract to see if there are any penalties for early cancellation. Once you've chosen a new supplier, they will contact your old supplier and handle the changeover.
Switching providers can take anywhere from 11 to 40 days to take effect, depending on the last meter read date.
Contract stipulations like early termination fees and other penalties. It is important to always research switching suppliers before deciding to switch.
Yes, websites like PA Power Switch, PA Energy Ratings, and PA Gas Switch allow consumers to compare electricity and natural gas plans and suppliers.
You may be able to save money by finding a better deal on your electricity plan, or you may prefer a plan that uses renewable and alternative energy sources.
