Pennsylvania startup offers new approach to switching electricity providers

A new company has taken a different approach to encouraging Pennsylvania residents to switch electricity providers, according to AOL Energy.

Pennsylvania has been slowly introducing its electricity deregulation policy over the past few years, steadily increasing the degree of competition. However, many residents have remained hesitant about making the switch.

Paoli, Pennsylvania-based start-up AlphaBuyer has offered residents a different option than those presented by most electricity suppliers. Many residents can already find lower electricity rates with an alternate electricity provider, but many are wary of making the switch to an unfamiliar company, fearing they might be stuck in a contract they do not want.

AlphaBuyer instead bundles residents together in the hopes of offering them an even lower electricity price with the providers. Electricity supplier AMERIgreen has gotten 10 percent of its customers from AlphaBuyer giving them incentives to offer a good rate.

"Ten percent is a pretty big number," AMERIgreen's Jon Loercher told AOL Energy. "They have the ability to bring in thousands of customers."

Residents may not realize that they can already save money by switching electricity suppliers, but many might feel more confident as part of a group.

So far The Philadelphia Inquirer notes a recent survey found that less than half of all residents have even considered switching.