Whether you’re here by chance or because you are tired of fighting with your current electricity provider, or if you want to know how to choose an electric company, let us tell you you’re in the right place. Finding a new electricity supplier is not as hard as it might seem. When exercising your power to choose, it is a straightforward process that will take you less than 10 minutes, including the time you read this post.
What’s even more remarkable is that you may be able to save money, find suppliers who use green/renewable energy resources, acquire other types of services, or get rewards by shopping for energy suppliers. Before knowing how to choose an electric company, make sure you consider what is essential to you and ask plenty of questions.
So without further ado, let’s get you through the steps on how to choose an electric company to ensure you always get the best deals & the lowest energy rates:
How to Choose an Electric Company that suits you?
The answer is quite simple; if you live in an energy deregulated state, you will have the power to choose your energy rate from a list of authorized service providers in your state. Follow the next steps to make sure you get the one that’s right for you:
Source: Photo by Analogicus from Pixabay
1. Understand your current costs, plans, and contract terms
This is an advantage of deregulation. If you want to know how to choose an electric company, you’ll be better prepared to find a new energy supplier that meets your needs after understanding the energy cost for your house or small company. Take a look at how much money you’ve been spending on the last couple of months, check out your previous bills from your local utility and see how much you’ve been paying for electricity.
Alternatively, you can log in to your account and check it online if you don’t have your paper bills handy. Because prices and energy expenses change depending on usage, understanding your energy bill and how much electricity you consume each month will help you find the optimal pricing point for your home.
On the other side, to know how to choose an electric company, you also need to understand your current plans, contract terms, etc. Tell your current electricity supplier – or current utility company – to know if you’re under any contract term if it has a termination fee and its deadline.
2. Do a little research on the suppliers
The second step of the list of how to choose an electric company is to start research on the supplies that work in your area. Remember that legislation established a clear distinction between Utility Companies, REPs, and Generators. Which are:
- Generators: the corporations that generate electricity;
- Retail Electricity Providers (REPs): the companies who purchase large quantities of this energy on the wholesale market and resale it to you, the end-user.
- Utility companies are in charge of energy transmission and distribution of electricity.
We can explain this better in a short video:
With this cleared out, make sure you perform good research on the possible REPs that serve your area. The research on electricity suppliers must include their customer service if they’re licensed in your state, their history and reputation, and which energy sources they use.
3. Select an electricity plan that works for you: Fixed or variable rates
Another advantage of deregulation, which is a critical step to answer how to choose an electric company, is to understand the different rates out there in the market. What you get from them and what works best for you will be the one that matches your consumption habits. In general, both rates are widely available among different electricity providers. It’s on you to decide which one works best for your case. So, let’s find out how they work:
Variable vs Fixed Rate Electriciy
Variable rate electricity:
In a nutshell, this is a plan in which your kWh price fluctuates according to peak season, seasonality, or daylight. Demand response and timing differences are commonly used to govern these schemes. The cost per kilowatt-hour is usually higher when the demand is higher. Check out how peak load pricing works on this link.
Fixed rate electricity:
On the other hand, these plans guarantee that no matter what happens in the market (severe temperatures, oil prices, etc. ), the electricity you pay will be the same. You will be able to manage your budget better. Find more about fixed-rate electricity plans and their perks.
Here, what is essential is to ask yourself, besides just how to choose an electric company is whether you have a set monthly budget for electricity or not. If that’s the case, you should usually go for a fixed-rate contract to budget more easily.
4. Read the fine print, perks, rewards, and terms.
And last but not least. When we search for how to choose an electric company online, we will come across different perks, rewards, and contract terms.
Many electricity offers include incentives such as $50 in reward points each month to $100 as a reward for staying with the supplier for a stated period, resulting in significant savings. If having a rewarding choice is essential to you, think about the prizes available and decide which ones are a good fit for you and would provide the most value.
When you ask yourself how to choose an electric company, you should dig more into deregulation. Because the deregulated energy business is a competitive market, each supplier strives to win as many new consumers as possible. When you sign up for a plan, many adopt the free giveaway strategy, giving you unique energy-related products. What’s the catch, you might wonder? There is no catch.
Does this sound like too much hassle? Don’t worry, leave it out to us.
At Click2Power, we do this research for you in the energy deregulated states, ensuring you have the best offer. So if you ask yourself how to choose an electric company, you can visit us, and we compare electricity providers to make sure we give you:
- The best rates
- Easy enrollment
- Complete control of your costs with fixed rates
- No Hidden fees
- Exceptional customer service!
Do you want to learn more about how you can benefit from Energy Deregulation? Feel free to call us now at (833) 680-2025 or fill up the form on our website—one of our energy experts will be willing to help you with all the information you may need!