Molly Ayala
If you're looking to change your electricity supplier in New Jersey, there are a few things you should know. First, you have the right to choose a new supplier at any time, but you must notify your current supplier of your decision. You'll then want to compare prices and contract options from licensed third-party suppliers in your area. When reviewing contracts, be sure to ask about pricing options, contract length, and any potential penalties for early termination. Once you've selected a new supplier, they must confirm your switch in writing, and you have seven days to change your mind. It's also good to know that if your new supplier fails to provide service, your previous supplier will step in to ensure uninterrupted power.
| Characteristics | Values |
|---|---|
| Who can switch? | Any electric or gas customer in New Jersey is eligible to shop for a new supplier. |
| How to choose a new supplier | Compare prices of licensed electric and natural gas third-party suppliers. Visit the websites of your electric and/or gas distribution company for specific information on buying third-party supplies within your service area. |
| What to ask about | Pricing options (fixed, floating, or hybrid), contract length, penalties for early termination, billing options, and other products or services offered. |
| Before switching | Understand your current bill and get a "Price to Compare" figure from your current utility to ensure you get the best deal. |
| Switching process | Notify your current electricity supplier, review the terms and conditions of the new contract, and confirm your decision to switch in writing to your Electric Distribution Company. |
| After switching | You will still receive a bill from PSE&G for distribution and can switch back to your regular service at any time. |
| Consumer rights | You have the right to receive a one-page summary of your contract, be informed of the price per kWh or therm over the contract term, and know the projected savings. Your contract must include a complete list of fees and charges, and you cannot be charged a fee for switching. |
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What You'll Learn
Understanding your current bill
Understanding your current electricity bill in New Jersey can help you identify ways to save money and make more sustainable choices. Firstly, it's important to note that New Jersey has a deregulated energy market, which means consumers can choose their electricity supplier. This can influence the supply rate on your bill. The supply charges cover the cost of generating the electricity you consume.
Delivery charges are another component of your bill. These fees are associated with transmitting electricity from power plants to your home and maintaining the grid. These charges are set by your local utility and remain consistent, regardless of your chosen supplier.
Additionally, your bill may include additional fees and taxes. This covers state and local taxes, as well as fees for public benefit programs supporting energy efficiency and renewable energy initiatives.
To understand your bill better, you can review your recent electricity bills to identify your average monthly consumption. This will help you understand your usage patterns and make informed decisions when comparing electricity rates and providers. You can utilize online platforms like EnergyBot, ElectricityRates, and NJ Energy Ratings to compare rates and find competitive pricing.
Finally, by analyzing your bill, you can identify your peak energy usage times. By rescheduling high-energy activities, such as running appliances or charging electric vehicles to off-peak times, you can significantly reduce your electricity bills.
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Comparing prices and suppliers
To compare prices, you can use the Price to Compare figure from your current utility bill. This is the average cost per kilowatt-hour (kWh) for electric generation and transmission. You can subtract a potential new supplier's price from this figure to calculate your potential savings. Multiply this by your average monthly usage to get an estimated monthly savings amount.
You can also use online tools such as NJ Energy Ratings or SaveOnEnergy to compare rates and suppliers. These sites allow you to filter plans based on your needs, such as renewable energy options, and find the best rates in your area.
When comparing suppliers, you should look at the different contracts and products they offer. Suppliers typically offer fixed-rate, variable-rate, or hybrid contracts. Fixed-rate contracts offer a set price for energy supplies throughout the contract term, while variable-rate contracts allow the price to fluctuate monthly based on wholesale costs. Hybrid contracts combine elements of both fixed and variable rates.
It is important to ask about contract length, any potential penalties for early cancellation, and any additional fees or charges that may be included in your bill. You should also inquire about billing options, such as whether you can pay a consolidated bill for energy supplies and delivery services or if separate bills are required.
By comparing prices and suppliers and considering your energy needs, budget, and preferences, you can make an informed decision when choosing a new electricity provider in New Jersey.
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Contract types and terms
When choosing an electricity supplier in New Jersey, you will encounter various contract types and terms offered by different suppliers. Understanding these options is crucial to making an informed decision about your electric supplier. Here is a detailed overview of the contract types and terms you may come across:
Fixed-Rate Contracts: With a fixed-rate contract, the rate you pay for electricity remains constant throughout the entire contract term. This means that regardless of market fluctuations, your rate will not change. Fixed-rate contracts typically last for a defined period, such as six months, one year, or even longer. This option provides predictability and stability in your electricity costs, allowing you to budget more effectively.
Variable-Rate Contracts: Variable-rate contracts offer rates that can fluctuate over time based on market conditions and the supplier's pricing decisions. With this type of contract, your electricity rate may change monthly, quarterly, or at the discretion of the supplier. Variable-rate plans often provide more flexibility, as you are not locked into a long-term contract. However, it's important to closely monitor your rates, as they can increase significantly during periods of high demand or market volatility.
Introductory or Promotional Rates: Some suppliers may offer introductory or promotional rates to attract new customers. These rates are typically lower than the standard rates offered by the supplier and may apply for a limited period, such as the first few months of your contract. While introductory rates can provide significant savings initially, be sure to understand the terms and conditions, including any potential rate increases after the promotional period ends.
Long-Term Contracts: Electricity suppliers may offer long-term contracts, ranging from one year to multiple years. Longer-term contracts often provide stability and the potential for lower rates, as suppliers may offer discounts for extended commitments. However, it's important to carefully consider your options before committing to a long-term contract, as it may be challenging to switch suppliers before the end of the term.
Early Termination Fees: Many electricity contracts include early termination fees. These fees apply if you decide to terminate your contract before the end of the agreed-upon term. Suppliers typically charge a flat fee or a fee based on a certain dollar amount per month remaining on your contract. Be sure to carefully review the terms and conditions regarding early termination to avoid unexpected fees.
Automatic Renewal Clauses: Some electricity contracts include automatic renewal clauses. This means that unless you provide notice of cancellation within a specified timeframe, your contract will automatically renew for another term. Pay close attention to the renewal terms and conditions to ensure you understand the process for cancelling or renewing your contract.
Understanding the contract types and terms offered by electricity suppliers in New Jersey is essential for making an informed choice. Take the time to review and compare different suppliers' contracts, considering factors such as rate stability, contract length, and potential fees. This will help you select the most suitable supplier and contract that aligns with your needs and budget.
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Switching and cancellation
Switching energy suppliers in New Jersey is a simple process. First, you need to understand your current energy bill to ensure you get the best deal when you switch. Then, you can compare prices and providers. It's important to only compare the prices of licensed electric and natural gas third-party suppliers (TPS). You can find a list of these on the NJ BPU website.
Once you've found a new supplier, you must notify your current electricity supplier of your intention to switch. They will likely offer you incentives to stay, such as changes to your contract or free gifts. If you still want to go through with the switch, they will confirm it in writing. You then have 7 days to decide if you've changed your mind. If not, your switch will be confirmed after 7 days.
Before choosing a new supplier, carefully review the terms and conditions of the contract. Ask about the pricing options the supplier offers, as well as the length of the contract and any penalties for early cancellation. You have the right to receive a one-page summary of your contract that will highlight and summarize the most relevant contract terms.
If your new supplier fails to provide service, PSE&G will step in and provide you with uninterrupted power and natural gas. You can also switch back to your regular service from PSE&G at any time, but be sure to check your contract with your new energy supplier for any early cancellation fees.
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Your rights
As a consumer in New Jersey, you have the right to choose your electricity supplier and the terms of your service. This means you are free to switch electricity suppliers at any time without incurring any
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Frequently asked questions
You can compare rates and providers on sites like NJ Power Switch and NJ Energy Ratings. You can also obtain an electric enrollment kit by calling PSE&G at 1-800-436-7734, which will include a list of electric suppliers.
You should carefully review the terms and conditions of the contract. Ask about the pricing options the supplier offers, which can be fixed, floating, or hybrid. You should also ask about the length of the contract and any penalties for early cancellation.
Notify your current electricity supplier. They will likely offer you incentives to stay, but if you want to switch, they will have to confirm it in writing. Once you've received your written confirmation, you have 7 days to change your mind.
