Picking a power supplier not just a matter of price
Share with others:
As of last month, Pennsylvanians statewide were able to shop for the electricity that powers their homes. While the actual process can be fairly simple, it also can be intimidating for consumers unaccustomed to shopping for electricity.
Consumers looking to switch electricity suppliers should pay attention to more than the rate being offered, Pennsylvania Consumer Advocate Sonny Popowsky said.
"You have to understand what the terms are," he said.
That includes knowing the length of the contract, whether the rate being offered is a fixed rate or a variable one, and what the fee might be if you cancel a contract early to switch to a different supplier.
Not all of the suppliers offer savings. Radnor, Pa.-based Community Energy and PPL EnergyPlus, based in Allentown, both charge extra for their electricity, to help fund the development of wind energy and solar power sources.
Once you have signed up with your new supplier, your utility company will continue to deliver the electricity to your home and perform repairs as it would have done before.
The only change you should notice is new information on your monthly bill showing your new supplier and rate.
"It may take a number of weeks, one or two billing cycles, to get on the flow," said Claire Monaghan, spokeswoman for Direct Energy, which entered the Pittsburgh residential market in September.
If your third bill after signing up with a competitive supplier does not show that supplier's rates in effect, call the supplier to make sure that there are no problems with your account.
Consumers may find themselves receiving offers for electricity through a variety of channels.
Dominion Energy Solutions and FirstEnergy have focused on direct mail campaigns. Viridian, based in Norwalk, Conn., relies on individuals marketing to their friends and family -- offering not only electricity but also the opportunity to become marketers themselves.
A third way that suppliers may find customers is by marketing to affinity groups. A supplier may offer a deal to members of a credit union or a sorority, or even to residents of a particular municipality.
First Published February 10, 2011 12:00 am
