Molly Ayala
Changing your gas and electricity supplier can save you money on your energy bills. If your state has a deregulated energy market, you can switch suppliers to get better rates. You can choose your supplier based on the price, billing options, and contract length. When you switch, your new supplier will notify your utility company, and they will work together to switch your supply. You will still call your utility company for outages, emergencies, and questions about your service.
| Characteristics | Values |
|---|---|
| Switching suppliers | Easy, no disruption of service |
| Choosing a supplier | Depends on your location, energy needs, and contract preferences |
| Supplier rates | Variable or fixed |
| Billing options | Dual billing, single bill, utility consolidated billing |
| Enrollment | Online or by phone |
| Enrollment confirmation | By mail |
| Contract end | Set a reminder to shop for a new rate |
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What You'll Learn
Understand your electricity bill
Understanding your electricity bill is an important part of managing your finances. While the exact contents of your bill will vary based on your location and utility, there are several common components that everyone should understand.
Firstly, it's important to correctly calculate the amount of electricity you use each month. Your bill may break down your daily use or show how your monthly usage changes over the year. Make sure you're assessing your usage for the current billing cycle, which is usually monthly. Don't confuse a daily rate with a monthly rate!
Secondly, your bill will typically include two main charges: supply and distribution/transmission. If you have a tiered bill structure or demand charges, your bill may be more difficult to read. You can better understand how your electricity consumption impacts your bill by dividing the cost of your bill by your total consumption.
Your bill may also include other municipal bills like gas or water. If you have solar panels installed, your consumption will be lower, and you may owe less or nothing to your utility company. Your bill will show how much electricity you pulled from the grid, as well as any net metering credits or other incentives.
Finally, understanding what a kilowatt-hour (kWh) is can help you control your energy usage and reduce your bills. Your bill will vary depending on how many kilowatt-hours you use and the rate you pay. Demand is a measurement of the highest usage of electricity in any single 15-minute (or sometimes 5-minute) period during a monthly billing cycle. Demand is measured in kilowatts (kW).
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Check if you can switch
Before switching your gas and electricity supplier, it's important to check if you can make the switch. Energy deregulation allows you to choose the supply plan and contract length that works for you. However, it's important to note that energy deregulation laws vary by state, so you'll need to check if your state has a deregulated energy market. If your state has a deregulated energy market, you can switch your gas and electricity suppliers to take advantage of better rates and more flexible terms.
Additionally, you should review your current plan's agreement to ensure you won't incur any early cancellation fees. Some plans offer a 'grace period' that allows you to cancel without penalties, while others may have stricter terms. Understanding the terms of your current plan will help you make an informed decision about switching.
Next, you'll want to explore your options. Contact potential suppliers and review their offers, including pricing, contractual terms, enrollment process, billing, and services provided. Be sure to compare the electric supply costs rather than the delivery charges, as these can vary.
Finally, consider the type of billing that works best for you. Some suppliers offer dual billing, where you receive separate bills for delivery services and electric supply charges. Others may provide a single bill option, consolidating both delivery and supply charges into one convenient invoice. Understanding the billing options available will help you make an informed decision about which supplier best meets your needs.
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Compare suppliers and rates
Comparing suppliers and rates is an important step in changing your gas and electricity supplier. It can help you find a cheaper deal or a greener option. Here are some key things to keep in mind when comparing suppliers and rates:
Plan Type
You can choose between dual fuel deals, which offer both gas and electricity from the same supplier, or electricity-only or gas-only deals. Dual fuel tariffs are common because they are more convenient, with only one supplier and one bill. However, in some cases, it might be cheaper to have separate suppliers for gas and electricity.
Rate Type
You can choose between fixed-rate tariffs, where the unit cost remains the same for an agreed-upon length of time, and variable tariffs, where the unit cost changes with the wholesale energy market. Fixed-rate tariffs offer more price certainty, especially in times of high wholesale energy prices. However, in times of low wholesale prices, variable tariffs can be cheaper.
Payment Method
The way you pay for your energy can also impact the deal you choose. Direct Debit is a common payment method, and the amount you pay each month is usually based on your estimated annual energy usage. Some suppliers may offer benefits or incentives for choosing a particular payment method.
Green Accreditation
If you want to switch to a greener energy option, look for Green Accreditation badges. These accreditations rate energy deals based on how 'green' they are and how the energy is sourced. This can help you make an informed decision if sustainability is important to you.
Unit Rates
When comparing suppliers, consider their unit rates. The unit rate is usually measured in kilowatt hours (kWh) and should be listed on your bill. Knowing your current unit rate can help you identify potential savings with other suppliers.
Exit Fees
If you are currently on a fixed-term contract, you may have to pay exit fees if you switch to a new supplier before the contract ends. Be sure to factor these costs into your decision when comparing suppliers and rates.
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Review the plan and supplier
Once you've found a supplier that offers a rate that works for your home, it's important to review the plan and supplier carefully before making a decision. Here are some key things to consider:
Plan Length
Most plans state the length of the plan in the name – for example, a plan named 'Premier Pick 24 Month' is likely a two-year plan. It's a good idea to make a note of the plan's end date so you can shop around for a new rate when the plan is over.
Fixed or Variable Rate
A fixed-rate plan offers the same price every day, every month. A variable-rate plan can change in price after a few weeks or months. Choosing a fixed-rate plan can help keep your bills lower and more predictable.
Cancellation Terms
Some plans offer a 'grace period' that allows you to cancel within a certain period with no fees, while others are binding from the start. Be sure to check your plan's agreement to understand any potential fees for early cancellation.
Billing Options
Some suppliers offer dual billing, where you receive separate bills for delivery services and electric supply charges. Others offer a single bill option, where these charges are consolidated into one bill. Check which billing options your supplier offers and choose the one that suits you best.
Supplier Reputation
It's important to research the supplier's reputation and read reviews from other customers. This can give you an idea of the quality of their services, their responsiveness to issues, and their overall reliability. Check independent sources and forums to get a balanced view.
Customer Service
Consider the level of customer service and support offered by the supplier. Do they have multiple channels of communication, such as phone, email, and online chat? Are they responsive and easy to reach? How do they handle complaints and resolve issues? Testing their customer service before signing up can give you valuable insights.
Remember, taking the time to thoroughly review the plan and supplier will help ensure that you make an informed decision and choose an option that best meets your needs.
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Enrol with your new supplier
Enrolling with a new energy supplier is a simple process, but there are a few things to keep in mind. First, check if your account is eligible to switch energy providers. If you are not located in a deregulated energy state, you must get your energy supply from the local utility company.
If you are eligible to switch, you should select a competitive retail energy supplier that suits your needs and budget. Review the terms and conditions of the new contract carefully, paying attention to the total rate, term, bandwidth clauses, force majeure clauses, gross receipts taxes, and other items. Most fixed-rate contracts have early termination penalties, so be sure to understand how these are calculated.
Once you have chosen your new supplier, you can typically enrol online, with a paper contract (or eSign), or via telephone. If you are moving to a new address, inform your new supplier of your move, and they will instruct you on the available options. Depending on your location and supplier, you may be able to transfer your existing contract to your new address or sign a new agreement.
After you have enrolled with your new supplier, they will submit an enrollment request to your local utility company. The utility company will then reassign the supply portion of your electric bill to your new supplier, and it can take one to two billing cycles for the new supplier charges to appear.
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Frequently asked questions
If your state has a deregulated energy market, you can change your supplier to get better rates. First, find out which suppliers service your area and compare their rates, plans, and offerings. Once you've chosen a supplier, contact them directly through their website or phone number.
In a deregulated energy market, you can choose who supplies your generation and transmission services and what price you pay for them. You can also choose the supply plan and contract length that works for you.
The distribution rate is charged by your utility company and covers the costs of delivering your energy, including the maintenance of pipes and wires. You cannot change this rate. The supplier rate is the rate that you can shop for and choose a plan that suits your needs.
When reviewing a new supplier's plan, take note of the length of the plan, whether the plan is fixed or variable, and any cancellation terms. A fixed-rate plan offers the same price every day, whereas a variable-rate plan can change after a few weeks or months.
