Consumer Corner: What Happens If I Switch Power Supply Companies?

Provided by the Bucks County Department of Consumer Protection:

Q. I have used the same electric company for years and am happy with their service. Lately though, I have been receiving telephone calls from multiple new power supply companies that promise a lower rate than what I currently pay. I would consider changing companies in the hope of saving some money on my monthly bill. My biggest concern however is what would happen in the event of a power outage? Would this new company help me if an outage would occur? – J.W. Churchville

A. You are not alone in your uncertainty about switching your power supply company. The staff at Bucks County Consumer Protection believe that the deregulation of power supply companies is a positive thing because, for one, competition in this market will help to drop prices down.

In an attempt at helping you to decide the following is a summary; the companies that have been contacting you are electric generation companies. Much the same as the one you have used for years except that they generate but do not supply electricity. That simply means that your existing power company will continue to be your supplier but you now have the option of shopping for electricity generators (the makers of electricity).

Your existing company will still be charging you for the maintenance of the lines and will be the one dealing with any power related issues. If you were to have a power outage, you would still call that company.

Your monthly bill will still come from your existing company as well, however, you will see that the line for kilowatts per hour (kWh) and the cost related will be from your new power supply company. This is where the monthly savings may occur.

Power supply companies in our area recently submitted a request to the Pennsylvania Utility Commission (PUC) to raise their rates. This could be a good time to shop around to see if you can save some money by switching your electric generating company.

To compare your options visit http://www.papowerswitch.com/, enter your zip code and you will be directed to a list of providers in your area and their current rates.

When making comparisons between companies be sure to consider the terms of the contract, including cancellation fees. Be cautious when considering a company that offers a variable rate. As we have seen in the recent past, an exceptionally cold winter could result in a spike in your utility rate.

As is with any consumer related transaction, it is important to understand all terms of a contract before entering into one.

For additional consumer tips and brochures visit us at http://www.buckscounty.org/government/CommunityServices/ConsumerProtection/ConsumerTips