electric bill

Essential Things to Consider Before Switching Electric Suppliers

Do you often find yourself rolling your eyes as you lament about your outrageous electric bill every month? By shopping around for competing electric suppliers in your area, you may be able to find a better deal and make considerable savings on your utility bill.

Choosing an Electricity Provider

Gone are the days when homeowners would have to deal with just one utility company. Nowadays, consumers have more options. This means consumers are able to look for the best pricing, which in turn help them lower their electric bill. Homeowners also are now able to utilize renewable energy alternatives as more consumers are now becoming more conscious about the carbon footprint they leave the environment.Electric Power Plant

But, before you jump ahead into switching electric suppliers, there are essential things you need to consider. Below are a few things to keep in mind to help you make an informed decision:

  1. Review your electric bill.

Take the time to look at your electric bill. Examine the rates, particularly the TCR or Tariff Comparison Rate as you start to review other pricing options from different electric companies. Take advantage of energy comparison calculators readily available online to see how much you can actually save by switching to another provider.

  1. Research for your options.

It is crucial that you do some research prior to switching providers. Is your prospective utility provider well-established? Do they have the necessary accreditation or license to operate in your area? How about their customer reviews and satisfaction rating?

  1. Check whether you’ll incur a fee or penalty for the switch.

Determine if you will have to pay a penalty fee for canceling services from your current provider. Do you have a contract with your existing provider? Or, is there a termination fee that will apply?

  1. Before signing the new plan, be sure to read the pricing plans and the terms of agreement carefully.

Examine the pricing plans of the electric supplier you are considering. Be sure you understand the fees and other charges included in their pricing plan. Ask the other provider how long you will be locked under their contract once you make the switch. Generally, you should pay attention to the following:

  • Pricing structure
  • Deposit requirements where applicable
  • Early cancellation or termination fees
  • Terms and length of the contract

Once you decide to switch energy suppliers, your new provider will notify your current utility provider of the switch. You should also receive confirmation from your electric supplier that the change has occurred. Typically, the effective date of the electric supplier switch should take place within three business days once your existing utility provider receives the notification from your new electric company.