New Jersey Electricity Rates
As of December 2015, New Jersey has had the 10th highest average residential electricity prices in the United States.
With these high electricity prices, the state of New Jersey has given the ability for residents to choose their electricity supplier. This is called electricity deregulation.
New Jersey Electric Choice
In 1999, New Jersey passed the Electric Discount and Energy Competition Act (EDECA). This law enables all electric customers in the state to shop around for their electric supply by separating the supply portion of their electric bill from the delivery and transmission portion. Customers are able to shop around for the supply portion by comparing prices and plans from various “retail electricity providers” in their service area.
Retail Electricity Providers compete with each other for customers, and it is this competition that results in lower electricity pricing, more customized and flexible plans, and more innovative products and services.
The delivery and transmission portion of a New Jersey electric bill is separate from the supply charge. No matter where the electricity comes from, customers’ utilities will continue to deliver the electricity, maintain wires and poles, respond to emergencies, and bill customers.
Public Utilities in New Jersey
The utilities in New Jersey are all regulated by the New Jersey Board of Public Utilities (BPU) and include:
Municipal Aggregation in New Jersey
A growing trend in New Jersey is municipal aggregation, whereby a municipal participates in deregulation by shopping around for electricity supply on behalf of its residents that have not already switched to a retail electricity provider. In municipal aggregation supply agreements, non-shopping municipal residents are automatically switched to the retail electricity provider of the municipals choice and are guaranteed to receive lower rates than what the utility charges.
What many customers don’t know is that they are likely to find even lower rates by shopping around on their own. Customers participating in municipal aggregation are able to switch to a provider of their choice, at any time with no penalty.
Electricity Providers in New Jersey
Retail electricity providers are the companies that homes and businesses can purchase electricity supply from. They are often able to offer lower rates than the default utilities because of the competition that stems from electric choice.
Some examples of electricity providers in NJ are as follows:
Compare New Jersey Electricity Rates
In New Jersey there are dozens of retail electricity providers to choose from. Here at ElectricityRates.com, we work to minimize the time-consuming research that is needed to choose the best New Jersey electric rate, provider and plan for your particular needs.
On the right side of this page, you’ll find a FREE tool that does the work for you by presenting you with the best available options in your area. Type in your zip code, select your utility, and view your best options.
To compare New Jersey electric rates, find the “Price-to-Compare” on your electric bill and compare with the rates of the available options. This number is expressed in cents per kilowatt hour (kWh) and will look something like this: 8.319 cents/kWh. Don’t just look for rate pricing. Look for:
- The duration of the plan
- Early termination fees
- Extra charges for using significantly more electricity than usual
- Incentives to switch
- Multiple bill pay options
- Special rates for first-time customers
- Green/Renewable electricity
Once you have selected the provider that is best for you and your electricity needs, simply enroll on our site. There’s no need to call your utility – the new provider will do all of the switching for you. The new rate charges will be on your electric bill in one to two cycles.