Should You Switch to a New Electric Company?

October 17, 2019 Lisa 0 Comments

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Utility bills are one of those everyday expenses we all have to deal with. Electricity, gas, water, internet, and other household services can quietly take up a big part of the monthly budget. So when your electric bill starts climbing higher than usual, it makes sense to stop and ask one important question: should you switch to a new electric company?

Before you make that decision, it is important to understand what switching actually means. In some states, energy deregulation allows customers to choose a different electricity supplier. However, that does not always mean a different company will be responsible for your power lines, poles, or outages. In many cases, your local utility still handles delivery and service, while the supplier provides the energy portion of your bill.

Switching energy companies in Utah or another state may sound simple, but it is not always something to rush into. Before changing providers, take time to compare rates, contract terms, fees, customer service, and whether the new plan will truly save you money. You may also want to explore switching energy companies or looking into solar options if you are trying to lower long-term energy costs.

Is Your Electric Company Really The Problem?

If your service has become unreliable, switching to another energy supplier may not fix the issue. Frequent power outages, flickering lights, or downed lines are usually handled by your local utility company, not the energy supplier.

That is because many energy suppliers do not produce or deliver the electricity directly to your home. Instead, they may supply the energy, while the public utility company still owns and maintains the wires, poles, meters, and infrastructure.

If you are dealing with outages or poor service, contact your local utility first. They are usually the company responsible for repairs, infrastructure upgrades, and emergency response.

Can You Ask Your Current Provider For A Better Rate?

Before switching, it may be worth calling your current provider and asking whether a better rate or plan is available. Many people do not realize they may be sitting on an older plan, a higher standard rate, or a plan that no longer fits their current household usage.

When you call, ask these questions:

Am I currently on the lowest available rate?
Is my current rate fixed or variable?
Has my introductory rate expired?
Are there any promotions or loyalty plans available?
Would changing plans lower my monthly bill?

Utility and energy companies want to keep customers. If there are competitors in your area, that can sometimes give you a little more room to compare rates and ask questions before making a change.

Understand Fixed Rates vs. Variable Rates

One of the biggest things to look at before switching electric companies is the type of rate being offered.

A fixed rate usually means your price per kilowatt-hour stays the same for the length of the contract. This can make your bill more predictable, although your total bill may still change depending on how much electricity you use.

A variable rate can change over time. It may start low, but it can increase based on market conditions, demand, or the terms of the plan. This is where some customers get surprised. A plan that looks affordable in the beginning may become more expensive later.

Before signing up, ask whether the advertised rate is fixed, variable, or introductory.

Are You Really Saving Money?

If a new energy provider offers a lower rate, it may sound like an easy decision. For example, if a company offers 11 cents per kilowatt-hour, that may seem like a great deal. However, you should look at the entire agreement before signing.

Ask these questions before switching:

How long does this rate last?
What happens after the introductory period ends?
Is there an early termination fee?
Are there monthly service charges?
Are there minimum usage fees?
Will I receive one bill or two separate bills?

Some contracts can last for months or even years. If you do not read the fine print, you could end up locked into a plan that becomes more expensive than the one you already had.

You can also read more about when it may make sense to switch to a better provider.

Check For Cancellation Fees Before Switching

Before leaving your current electric company or supplier, check whether you are under contract. Some plans charge early termination fees if you cancel before the contract ends.

That fee can quickly reduce or erase any savings you hoped to gain by switching. If your current contract is close to ending, it may be better to wait until the end date before changing providers.

Always ask for cancellation terms in writing before agreeing to a new plan.

Compare More Than The Monthly Rate

The lowest advertised rate is not always the best deal. A good electric company or energy supplier should be transparent about pricing, billing, customer support, fees, and contract terms.

When comparing companies, look at:

Customer reviews
Contract length
Billing options
Customer service hours
Renewable energy options
Early cancellation fees
Whether the rate is fixed or variable

A slightly higher rate with clear terms may be better than a low introductory rate that later jumps unexpectedly.

Should You Consider Renewable Energy Options?

If you are reviewing your energy options, this may also be a good time to think about renewable energy. Some providers offer green energy plans that may include solar, wind, hydro, or other renewable sources.

Homeowners may also consider solar panels, especially if they live in an area with strong sunlight, high electric rates, or available incentives. Solar is not the right choice for every home, but it can be worth researching if you are looking for long-term savings and more energy independence.

Before investing in solar, compare installation costs, financing options, roof condition, sunlight exposure, battery storage, tax incentives, and the expected return on investment.

When Switching Electric Companies May Make Sense

Switching may be worth considering if:

Your current rate is much higher than other available offers.
Your introductory rate expired and your bill increased.
You want a fixed rate for more predictable billing.
You found a provider with better terms and no hidden fees.
You want a renewable energy plan.
You are unhappy with billing or customer service from your current supplier.

When You May Want To Stay Put

Switching may not be the best move if:

Your current rate is already competitive.
You would have to pay a large cancellation fee.
The new rate is only temporary.
The contract terms are unclear.
The company has poor customer reviews.
Your main issue is outages, since your local utility usually handles service reliability.

Questions To Ask Before Signing A New Electric Plan

Before agreeing to a new provider, take a few minutes to ask clear questions. A reliable company should be able to answer them without confusion.

What is the exact rate per kilowatt-hour?
Is the rate fixed or variable?
How long does the rate last?
Are there any monthly fees?
Are there early termination fees?
What happens when the contract ends?
Will my local utility still handle outages?
How will billing work?
Is there a renewable energy option?

FAQs About Switching Electric Companies

Will switching electric companies stop power outages?

Usually, no. Your local utility company is generally responsible for power lines, poles, meters, and outage repairs. A new supplier may change the energy portion of your bill, but it usually will not change who handles service interruptions.

Can switching electric companies lower my bill?

It can, but only if the new plan offers better overall terms. Always compare the full cost, not just the advertised rate.

Can I switch back to my old provider?

In many cases, yes. However, you should check your contract first because cancellation fees or waiting periods may apply.

Is a fixed rate better than a variable rate?

A fixed rate can offer more predictable billing, while a variable rate may change over time. The better option depends on your budget, usage, and comfort level with price changes.

Should I choose a green energy plan?

A green energy plan may be worth considering if you want to support renewable energy. Just make sure you understand the pricing, terms, and how the plan works in your area.