Electricity Savings in Delaware
February 1, 2010
Due to current market conditions businesses and consumers in Delaware can now save money on their high electricity bills. Delmarva, the incumbent utility in Delaware, is still responsible for the maintenance and management of the lines and wires. They also provide a default service to those customers who are slow or unwilling to shop the competitive market. Customers who do shop can save between 10-20% off of the supply portion of their bill, depending on the market and customer size.
As an example, large business customers who are classified as rate class LGS will pay a default rate of $0.1177 per KWh in 2010. If they shop the market today they can find fixed rates below $0.10, which result in savings above 15%.
Jacob Stein Said,
February 10, 2010 @ 1:42 pm
Did the state enact some tpye of law that would prevent Delmarva from overcharging customers on delivery fees, who choose an alterternative provider for their supply service?
I don’t want to sign a contract that will save be 15% on the supply side only to see a 25% increase on the delivery charges.
ElectricityWatch Team Said,
February 10, 2010 @ 5:50 pm
Delmarva is a regulated lines and wires company. They do not possess the power to single out and raise prices on customers without filing a price request with the state.
Furthermore, Delmarva is not in the business of providing competitive retail electric rates. They offer default rates which are determined by auction prices. The way these default prices are set are predetermined. In the past, these predetermined methods have yielded default rates that were lower than competitive market rates. Right now the competitive rates are lower than the default rates.
Delmarva does not receive profits from supplying customers with their default service. Eventually they hope for all of their default customers to be with a competitive supplier so that they can focus all of their efforts on the management and reliability of the delivery of electricity.