Switching Electricity Providers – Top 5 Myths

Why people are scared to switch electricity providers???

With deregulation the electricity market is becoming very competitive and there are a lot of companies out there trying to convince people to switch from their current provider to a alternative provider.  The majority of us do not know much about electricity deregulation so when we talk to someone who is trying to get our business we have a lot of concerns.  These are the top five questions people will have regarding this issue….

1. There will be an interruption of service.

Unlike changing your telephone lines when the telephone market deregulated, when switching you electricity supplier you will NEVER have an interuption of service.  Electricity deregulation is different than the telephone market, when you switch suppliers the only thing you are changing is where your electricity provider gets the energy you use.  This means the same company that has been providing you with your electricity will still do so, they are called your lines and wires company and they are regulated by the state so no matter who you choose to supply your electricity they will give you the same service they always have.  Your lines and wires company is now completely out of the retail market of electricity, so they will continue to provide you electricity but you will be stuck paying a high default rate.

2. I will not have anyone to call if power goes out.

Since you will still have the same lines and wires company that has always provided you with your electricity and they are regulated by the state, you will always call them if anything were to happen with your electricity and they will always provide you with the same service they always have regardless of your supplier.  They only time you would call the third party supplier is if there happened to be a billing issue.

3. I will not get the same service from my lines and wires company if I switch.

This is completely false.  When a state deregulates they want competition in the market, that is the whole point.  To ensure that this happens the state will regulate the lines and wires company and will not allow them to profit off the actual selling of electricity.  So not only does your lines and wires company not care if you switch, they want you to.  You will always receive the same service from them that you have had in the past.

4. It might be a scam to switch.

When you look into finding a third party electricity supplier, there are a number of providers that are in all 14 of the deregulated states, some of which are fortune 200 companies.  This means they are very well know and you should not be scared to work with them.  You can find the best provider for you by contacting them all yourself and getting bid, or simply by contacting an electricity broker that will do all of the work for you.

5. Hidden Charges.

Some of the electricity contracts can be confusing with all of the different numbers and charges, especially if you do not deal with them on a regular basis.  While you are not being taken advantage of by having your electricity switched, there are some providers out there that will try and hide some fees from you.  The best way to avoid this is by using a electricity broker who will work for you and not the electricity company.  Brokers can be usually very knowledgeable on all electricity issues and contract concessions which will benefit you a lot.