Questions to Ask When Switching to an Energy Supply Provider: Home Edition
ResidentialJun 27, 2023
Many of us have plenty of things on our plate. Between work life and home life, who has time to research a retail energy supply provider? With several local utilities recently announcing rate increases, it should be at the top of your to-do list, especially if you are a customer in your local utility’s electric choice program.
Unless you are on a fixed price plan, the price you pay for your home’s electricity supply with the local utility will fluctuate with market conditions, and if the energy market goes up, so will the price you pay. You have the choice to switch to a retail energy supply provider, like AEP Energy, to get a fixed price plan to keep your bills stable even when energy prices are rising. And nothing else changes with your service. Emergency services, maintenance and billing will continue to be handled by your local utility.
With many options to choose from, we want to help you make the best choice for your household. Read along for things to consider if you are thinking of switching to a retail energy supply provider.
Is the price fixed or does it change?
A variable rate plan is a fluctuating monthly rate based on several factors including energy market conditions. You will also most likely have to pay more during big energy surges during the winter or summer when the weather changes drastically.
One of the benefits of partnering with an energy supply provider is that they can offer price plans with a fixed rate, however, not all plans offered by energy supply providers are fixed. Make sure you read the fine print to ensure your energy rate is locked in for the duration of your contract.
Is the price just an introductory rate?
Some energy supply providers will promote a low price to catch shoppers’ attention. This could be an introductory rate that only lasts a few months before your rate increases for the remainder of your contract. Staying on top of your plan and monitoring your rate can ensure that you are aware of the price increases when and if the time comes.
Is the term length of the contract right for you?
Energy supply providers should offer price plans with a variety of term lengths; it’s key to choose a duration that will fit your home’s needs whether it’s a longer term so that you don’t have to think about it or if you’d prefer to keep your options open by selecting a shorter-term plan.
Are there renewable energy price plans offered?
If you are exploring environmentally friendly options, be sure to check if the energy supply provider provides renewable energy plans. Typically, these plans match your energy usage with Renewable Energy Certificates (RECs), which represents the environmental attributes that are produced when a renewable energy source, like wind or solar, generates one mega-watt (MW) of electricity and delivers it to the energy grid.
Are there any customer incentives?
Some suppliers may offer incentives, like gift cards, to entice you to switch. Be careful of offers that sound too good to be true. Make sure to read the details of the offer before you enroll.
What about AEP Energy?
At AEP Energy, we’ve considered these questions on your behalf want to make it easy for you to select an energy supply provider. As your energy experts, we offer a variety of fixed price plans with varying terms, including renewable energy options. You’ll also earn Reward Dollars to use in AEP Energy Reward Store for just for being a customer. And, if you are not 100% satisfied, you can cancel at any time without any cancellation fees.
Browse our website to learn more about AEP Energy and what we have to offer. You can also find more information about shopping for energy plans at the Public Utilities websites for our service territories in Illinois, Maryland, New Jersey, Ohio and Pennsylvania.
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