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How to Compare Energy Suppliers

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Energy suppliers produce electricity for residential and commercial consumers.

Selecting the right energy supplier to light your home, operate your heating and cooling system and power your appliances can save money on your utility bills and provide good, reliable service. Utility choices still are limited in some areas, but competition has opened up in many places to allow consumers to compare suppliers and consider factors such as price, contracts and fees. Consumers who are concerned about the source of their energy also have more information and options about how their power is generated.

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    Difficulty:
    Moderate

    Instructions

      • 1

        List the energy companies that service your area and their consumer contact information. You can get some guidance about approved suppliers from your state public service or public utility commission.

      • 2

        Ask each company what it charges per watt of electricity. Also inquire whether this rate is fixed or variable. For example, does this rate increase with demand on hot summer days, or is the rate quoted the average per watt?

      • 3

        Inquire about contracts and terms. Some suppliers require you to remain their customer for a specified period and impose early termination fees if you choose to switch to another company. The supplier also may renew your contract automatically. Find out about any incentives for new customers and termination notices required.

      • 4

        Find out whether the company requires a start-up fee or security deposit for new customers. Ask about the amount of the fee and whether the company will waive it if you agree to switch your business from another supplier.

      • 5

        Inquire about how each supplier generates the energy it produces. Does it use coal, natural gas, wind or nuclear sources? If clean, renewable energy is important to you, ask about emissions levels and choose a supplier that relies on eco-friendly production.

      • 6

        Check to see what avenues are available to customers with questions, complaints or concerns. Can you call for service and get a timely response, or do you have to submit requests in writing?

    Tips & Warnings

    • Asking friends and family about their experiences with energy suppliers can help you make a decision.

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    References

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    • Photo Credit electricity image by JCVStock from Fotolia.com

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