How to Choose & Switch Electricity Suppliers

Learn how to save on your electric bill by switching electricity suppliers with ElectricityRates.com! This page will not only teach you how to switch; it will also teach you all the factors you need to consider to be confident in your decision.

Key Takeaways

  • To compare electricity suppliers in your area, enter your zip code above.
  • When comparing plans, consider the terms and conditions, electricity rate, and plan length.
  • The rate you pay now is on your most recent electric bill.
  • After selecting the plan you like, it comes into effect within 1-2 billing cycles.

How to Choose and Switch Energy Suppliers

If you are lucky enough to live in a deregulated energy state, then you have the option to choose your electricity supplier company and plan. 

However, choice can become overwhelming if you don’t really understand the process. 

Our job at ElectricityRates.com is to take out any of the confusion and make it easy to switch suppliers and plans.  We do that with our compare and switch tool, which is a simple three-step process. 

How to use the ElectricityRates.com compare and switch tool

1. Enter Your Zip Code

When you open ElectricityRates.com, you have the ability to type in your zip code.

Entering your zip code allows us to compile all of the plans that are available in your area, as electricity rates and suppliers vary by location. 

You do not pay anything and nothing happens to your electricity plans just by entering your zip code. It just allows you to compare electricity suppliers based on your location.

2. Compare Electricity Suppliers

After you type in your zip code, you will get a list of electricity suppliers to choose from.

We recommend some of the best plans for your area first. These are often the plans that are the most popular, have 100% renewable energy, or have a special sign up bonuses.

Example of the electricity rates comparison tool from ElectricityRates.com

However, there are likely more plans if you scroll down, so be sure to check out all of your options.

When you are deciding between energy suppliers, it is imperative that you read their contract terms so you know what you are signing up for.

We have our own guide on how to read an electricity contract so you know what to do, but we will go through some of the important aspects here as well.

The Suppliers

You can find all of the suppliers here or on the right-hand side of our Compare Electricity Providers page. Click on the profiles to learn more about a specific supplier.

The Rate: The Difference Between Fixed or Variable

Example of fixed vs. variable electricity rate

When you are deciding between electricity providers, the rate is probably one of the first things that you will think about. To compare your current electricity rate to what you could be saving, check your most recent electricity bill. Your current rate will be listed there. 

When choosing an electricity supplier, they will often give you the choice between a fixed rate or a variable rate.

A fixed-rate means that the rate advertised is locked in for the length of the plan.

A variable-rate can increase or decrease by the month and does not have to stay at the advertised rate.

At ElectricityRates.com we only offer fixed-rate plans. We do this because fixed rates protect you from surprise rate increases (variable-rate plans are often guilty of this). It also protects you from the general electricity increases that happen every year in the US.

Length of Plan

Example of length of electricity plan

The length of the plan is the length of your contract. If you are on a fixed-rate plan, this is the length of time your rate is locked in for.

At the end of your plan, most suppliers switch you over to a month-to-month variable-rate plan. 

If you don’t want to go to a month-to-month variable-rate plan, you can negotiate another fixed-rate contract with the supplier, or switch to a fixed-rate contract with a different supplier here at ElectricityRates.com.

Cancellation Fees

Many contracts will have cancellation fees that you have to be on the lookout for. Sometimes there are no cancellation fees, while other times they can go up to $250.

A cancellation fee is charged if you cancel your plan before the specified plan length you agreed to.

Most of the time, you can find the cancellation fee in the “Plan Details” section. 

Example of electricity plan cancellation fee from ElectrictyRates.com

If it is not there, you will likely find it in the terms and conditions. 

Sign-up Bonuses

Some electricity plans offer sign-up bonuses, like this one from Constellation!

Example of electricity plan sign-up bonus from ElectricityRates.com

They are offering a Connect Energy Package to anyone who signs up for a 30-month plan. A Connect Energy Package can be used to schedule lights to turn off at night, secure entryways, and monitor the energy efficiency of your appliances. This package includes:

  • 1 Constellation Connect Hub
  • 1 Window & Door Sensor
  • 1 Smart Plug
  • 1 Smart Light Bulb

Other suppliers offer sign-up bonuses as well, so be sure to check them out! You may find the deal that works perfectly for you.

Energy Source

There are a few suppliers that source their electricity from 100% renewable energy. If they do they will have this label:

100 percent renewable sources

Even if you are not going for 100% renewable energy, many suppliers will have breakdowns of where their energy is sourced in a document in the “Plan Details” section. 

After you have compared your options and decide on a plan, you can easily switch by selecting your plan.

Switch Electricity Suppliers

When you have decided which plan you would like to switch to, you can sign up directly through our website in about five minutes. You just have to fill out our two-step form. 

The one thing you need will be your most recent utility bill so you can provide the supplier your account info.

After you complete the process, you’re done! Your new energy supplier will take care of the rest for you.

Your new plan will come into effect in about 1-2 bill cycles. Your bill will still be with your utility provider. Your utility is still delivering the power to your home, so they are the ones that read the meter and bill you. The only thing that has changed is your electricity supplier.