Essentials to Change Your Energy Plan

You can choose your energy supplier and rate plan if you live in a deregulated market. Learn how to compare plans and consider price, term length, and renewable energy options.

Large energy firms like electric utilities or oil and gas producers may also carry out energy planning, frequently done inside governmental institutions. Various stakeholders, including those from governmental organizations, regional utilities, the academic community, and other interest groups, may provide input throughout the energy planning process.

Identify Your Needs

Whether you're looking for a competitive electricity rate, great customer service, or both, you have options. But before you make the switch, it's essential to understand what your needs are.

Look at your past energy bills or online to see what kind of pricing plan you have now. For example, you may be on a variable-rate plan that changes rates monthly based on market prices. These plans are ideal for consumers who follow energy markets closely and can manage the math to ensure they get a good deal.

You'll also want to decide how long your contract lasts. Shorter plans are popular and typically allow you to quickly try new energy suppliers and find the best rate. On the other hand, longer plans—typically 18 months or more—provide stability and offer a fixed rate for a predetermined length of time. These plans are best for consumers who prefer to balance flexibility with a guaranteed satisfaction period and loyalty rewards.

You can save with a residential average demand price plan by shifting your energy usage to off-peak hours. Check your smart meter to see when you use the most energy, and adjust your appliances accordingly. For example, you could limit consumption at 3 AM by turning off your lights and appliances or reducing "vampire loads" by shutting off electronics you're not using.

Compare Your Options

Most states with deregulated energy markets allow residents to shop for a new energy plan from various suppliers. When you compare plans, you'll want to pay close attention to their terms of service. Some plans have a short contract term, while others are longer and provide stability over an extended period. Look for a plan that fits your needs and offers enticing incentives, such as a money-back guarantee or loyalty rewards.

You can compare rates by finding past energy bills or logging into your online account to view the current contract. You'll be able to see what you're paying for each energy unit, expressed in kWh or therm. Then you can decide whether a variable-rate or fixed-rate plan would work best for your home or business. You can also choose to change electric company that includes renewable energy options. 

Make the Switch

Thanks to deregulated energy markets, homeowners and businesses can choose from various electricity suppliers. But not all energy suppliers are created equal, and a few bad actors have given the industry a bad reputation. If you're considering a new supplier, it's essential to carefully review the terms of your contract and understand how different plans will impact your energy bill.

Whether your current supplier's rate has gone up, you're reaching the end of your contract, or you want to take advantage of signup incentives, it's worth shopping around. An online energy comparison tool can help you easily see what providers are available and offer competitive rates in your service area.

It's time to switch once you've found a plan that meets your needs. The process is typically quick and easy, with the new supplier handling all the paperwork with your utility company. Just be sure to check your next couple of natural gas and electricity bills for the transition to take effect, and keep an eye out for any early termination fees that could apply.

As a bonus, some energy suppliers also offer rewards or incentives like free nights and weekends, bill credits, or loyalty bonuses. These can be great options for those looking to save even more on their energy bills and support clean energy.

Get a Quote

Almost all energy plans are month-to-month, so you can always shop around or sign up for a shorter plan (3- to 12 months) without worrying about early termination fees. If you are on a longer plan, ensure you know the end date of your contract (or guarantee period) and set a calendar reminder a few months before, ensuring you have plenty of time to shop for a new supplier.

Another factor to consider is the rate structure of the plan you are considering. Fixed and some indexed rates are stable, but variable plans can fluctuate with the market. Knowing your usage patterns may help determine whether a variable or indexed plan would work best for you. If your demand peaks in the winter, consider a plan with a stable indexed rate. You can find out how the price of a kilowatt hour is calculated from the provider's rate structure description.