Why should I switch away from my utility?

Reading time: 3 minutes

3 minutes read

Category:
Last updated: 07/03/2020
Why should I switch away from my utility?

Is switching an option?

In the us, some states have kept to regulatory laws where utility companies have sole ownership of the energy supply. However, many regions have shown preference to an open (or deregulated) market where other companies are authorised to purchase energy from a wholesaler and then sell it at a retail level. This type of competitive market not only stimulates the economy, it also gives consumers the option to choose how they get their energy, and at what cost. 

See if you could be getting a better deal:

What is the difference between a utility and a retail energy provider?

Before deregulation, utility companies did it all; they would generate the energy, build and maintain the poles and powerlines that transport the energy, and they would deliver the natural gas and electricity to your home. 

With the introduction of new deregulation laws, companies (called retail energy providers or REPs) now have the authorization to take over the delivery of energy to your home. This means that utilities are still needed (since they still have ownership of all the powerlines) but as energy suppliers, REPs can create their own energy plans and price structures. 

Why should I switch away from my utility?

Most customers are interested in switching to a retail energy provider because their energy bills from the state utility are too high, and they want to do something about it. However, price is not the only factor that may prompt someone into switching away from a utility. 

Deregulated markets give you access to energy suppliers who may:

·      Offer a selection of different plans to choose from
·      Provide a more efficient service
·      Provide better customer service
·      Better meet your unique needs
·      Give you access to renewable energy options

Switching providers is a personal choice but there are many benefits if moving away from a utility is an option for you. 

How hard is it to switch away from a utility?

Switching energy providers doesn’t have to be a hassle. All you need to do is find a REP in your area, choose a plan that you think will best fit your budget and your needs. With Finance Guru, this process is easier than ever. Just enter your zip code in our comparison tool and we’ll see if we can find you a deal with a REP in your area.

Once you have signed up for a new plan, the energy supplier will contact your utility to notify them regarding the switch. The utility will then ask you to verify the change. The switchover will take anywhere from a few days to 3 weeks (ask your new provider for their unique timeline). In the meantime, you will still receive electricity/gas from your utility. 

Switching energy providers doesn’t have to be a hassle. All you need to do is find a REP in your area, choose a plan that you think will best fit your budget and your needs. With Finance Guru, this process is easier than ever. Just enter your zip code in our comparison tool and we’ll see if we can find you a deal with a REP in your area. Once you have signed up for a new plan, the energy supplier will contact your utility to notify them regarding the switch. The utility will then ask you to verify the change. The switchover will take anywhere from a few days to 3 weeks (ask your new provider for their unique timeline). In the meantime, you will still receive electricity/gas from your utility. 

Before attempting to switch away from your utility, you will first need to see if your region is open to a deregulated market. If it is, there will be a list of new retail energy providers to choose from. 

At Finance Guru, we have the ultimate energy plan comparison tool. This online tool is free to use and will help you to compare energy plans so that you can find the best deal. All you need to do is:

1.     Enter your zip code
2.     Select your current utility or REP from a list
3.     Detail your current supply (how much you pay per kilowatt-hour)
4.     Choose your new plan

And that’s it!
Finance Guru

Finance Guru