How Do I Switch My Electricity Provider?
Are you stuck with a high electricity rate? Or maybe your current provider has terrible customer service? Then it’s time to switch electricity providers. If you don’t know what to shop for, it can be daunting. But switching electricity providers doesn’t have to be a pain. Here’s what you need to know to switch providers and find the best electricity rate.
What to Know Before Switching
Before you switch plans, there are a few details to consider. First, check your PTC rate. You might be on a different plan already. But it’s good to use for comparison. You can check out our PTC rate review to find out more. Once you know your PTC rate, you can shop electricity rates.
Second, you should check if your current plan has any early termination fees. Check your original contract to find out if you do. High termination fees can eat up any savings you get by switching providers. Especially if you only have a month or two before your contract expires.
Finally, there’s the time of year to shop. Normally, we’d tell you to shop in the spring for the best rates. But this year has been weird. Natural gas prices have dropped quite low recently. This time last year is was $8 per MMBtu, and currently it’s sitting at $2.60 per MMBtu. This means lower electricity rates are availble right now, and you should be taking advantage of them.
What to Look for When Switching Electricity Providers
Now, there’s a few things to consider when shopping for a new provider.
First, decide whether you want a variable rate or a fixed rate. Variable rate plans only last for one month and don’t come with a contract. This makes them great for temporary arrangements while you wait for prices to fall. Their rates also can change from month to month. In contrast, fixed rate plans remain the same throughout their contract period. Contract terms can last from 2 months to 36 months. However if prices fall, you may miss out on the lower rate because you’ll still be locked into your contract rate.
Next, make sure to read your new terms of service carefully. Companies can charge early termination fees, monthly service fees, or even increase rates for excess usage.
Finally, check for what happens when your new contract expires. Some will renew automatically. Usually at their variable rate. Others will default you to the DLC rate. Keeping tabs on when your contract expires can help you avoid any costly surprises. It’s also a great idea to look at customer reviews. It can help you avoid a bad billing experience!
What Happens When You Switch Electricity Providers?
When you sign up with your new electricity provider, they’ll pretty much take care of the switch. Your new electricity provider will send a notice to your old provider and local utility, informing them of the switch. If you’re switching in the middle of a term with your old provider, they may charge an early termination fee. Be sure to read your old contract to determine if you’ll have any fees to pay.
Next, your new provider will send you a copy of your new contract. Your right to recission gives you three days to change your mind and cancel the contract. Your utility will then confirm the switch via mail.
Finally, your new plan usually takes effect on your next billing cycle. Congratulations, you’ve switched providers!
Switch and Save with PA Energy Ratings
Now you should feel confident switching providers. But where do you go to shop for a new plan? You can shop for rates, compare providers, and read reviews on one website. Switch and save with https://www.paenergyratings.com