Many people stick with their current energy provider because they don’t know how to choose a new one. They know their current bill is higher than they want and realize they must explore other options. How should they go about finding this new provider?
Plan Evaluation
Before choosing your energy provider, a homeowner must know how much they pay. They need to consider the customer service of the current provider and what features are available to them. Rate is the biggest reason many people look to change energy providers, but customer service also plays a role in this decision.
Why Switch?
There are many reasons a person might choose to switch energy providers. Their current plan may no longer meet their needs, or they might want to reduce their carbon footprint. Poor customer service can lead to a person looking for a new plan provider, or options might be limited. Some people today choose to find a provider that offers a fixed rate plan, so they know how much their monthly rate will be.
Choosing a Provider
Consumers should look at several factors when searching for a new provider in a deregulated market. Many individuals focus solely on the advertised rate per kilowatt hour and aren’t satisfied when they switch. Consumers need to look for locked rates or cap pricing so they don’t experience a significant price hike when the market fluctuates.
The homeowner should consider a short contract so they can get a better understanding of their energy consumption. Once they understand this consumption better, they can decide which plan best meets their needs. The Electricity Facts Label will help because it provides standardized information about each plan. With the help of this label, a consumer can understand the real cost of a plan.
Homeowners should consider switching to a time-of-use plan, mainly if they are gone throughout the day. Many of these plans offer free nights but high daytime rates. Homeowners must consider this and ensure they minimize electricity usage during peak times.
Some companies have gimmicks to draw people in. For example, a company might offer an extremely low rate, but the rate comes with a minimum usage requirement. The homeowner can pay significantly more if they do not meet the threshold. Read every contract carefully to look for gimmicks and other factors that could lead to unexpected expenses.
A homeowner might want to look into renewable options if they are worried about their carbon footprint. The cost difference might not be as big as many people imagine. Switching providers could allow consumers to pay similar rates while benefiting from clean energy.
Deregulation
Deregulation allows homeowners and business owners to choose which energy provider they use. However, only some states have chosen to deregulate utilities. A homeowner should check their state’s official website to learn whether they have a choice regarding their energy provider.
Homeowners should choose a provider with a low rate and outstanding customer service. The energy products offered play a role in this choice, and consumers often look for providers that align with their values or support the causes they care about. Cheaper electricity is always desirable, but customers must feel comfortable with their chosen company. A person may be willing to spend slightly more to ensure their chosen company will focus on what is most important to them.