Choosing an energy provider is an important decision. Contract length, pricing terms, fees, renewal details, billing policies, customer support, and additional benefits and services can all impact what you ultimately pay and what your experience will be like after enrollment.
In this blog, we’ll explain the benefits of shopping for new energy suppliers and provide a list of nine questions to ask before switching over to them, so you can compare plans with confidence.
Why Should You Shop For a New Energy Supplier?
In states with energy choice, like New York and Pennsylvania, you can select the company that supplies your electricity or natural gas.
An energy service company, or ESCO, purchases electricity or natural gas and supplies it to customers through the local utility. Here are a few reasons why you may want to consider shopping for a new energy supplier.
Find a Better Fit With a New Supplier
If your current contract no longer fits your needs or you’re unhappy with the customer service you’ve received, shopping around allows you to compare other suppliers before your agreement ends. Always review your existing agreement first, though. Early termination fees or other contract requirements may apply if you switch before the end of your term.
Protect Yourself from Rate Volatility
Energy market prices can change because of weather, fuel costs, regional demand, and other factors. If you’re on a variable-rate plan, you may see your supply rate change as market conditions shift. On the other hand, a fixed-rate plan offers more predictability by keeping your agreed-upon supply rate stable throughout the length of your contract.
Questions to Ask Your Energy Supplier
Before enrolling, ask your energy supplier these questions for a better understanding of their rates, contract, fees, renewal process, payment policies, and services offered.
1. What is the plan’s rate?
Start by asking exactly what you will pay for electricity or natural gas and whether the rate is fixed or variable.
With a fixed-rate plan, the supply rate remains the same for the agreed-upon contract term. A variable rate may change over time, based on the supplier’s terms or market conditions.
2. What’s included in the quoted rate and what’s billed separately?
The supply rate is only one part of your total energy bill. Your local utility typically charges separately for delivering electricity or natural gas through its infrastructure.
Ask whether the quoted supplier rate includes taxes, administrative charges, or other supplier-related fees. You should also understand which charges come from the utility and are therefore outside the supplier’s control.
3. What’s the cancellation or early termination fee?
Before signing a contract, find out whether you’ll be charged for leaving before the agreement ends. Ask about any early termination fees, whether fees decrease as the contract nears expiration, or whether the fee can be waived for certain circumstances, such as moving.
4. What happens when my contract term ends?
Ask whether the supplier sends a renewal notice, whether you need to actively renew, and what happens if you take no action. The process can differ by supplier, state, and contract type. Understanding what happens when a natural gas contract expires can help you prepare for renewal, switching suppliers, or returning to utility default service. You should also ask whether your next agreement will have the same rate structure or whether new terms will apply.
5. Is there a promotional rate, and what does it revert to?
A low introductory rate can look attractive, but it may only apply for a limited period. Ask whether the advertised price is promotional and exactly how long it remains in effect. Then, find out what happens afterward. The rate may transition to another fixed rate, a variable rate, or a different contract structure.
6. Are there monthly fees regardless of usage?
Some energy plans may include recurring supplier fees in addition to the rate charged for the energy you consume. Ask whether there are monthly service charges, account fees, minimum-use requirements, or other recurring costs.
You may also see separate charges from your utility. For example, TDU charges may cover the cost of transmitting and distributing electricity, while certain customers may also encounter electricity demand charges based on how much power they use at one time.
7. Do you offer any price-protection or rate-cap guarantees?
Ask how the plan handles changes in wholesale energy prices. If you prefer predictability, find out whether the supplier offers a fixed-rate plan and how long that rate remains in place. Remain cautious about any vague claims about “price protection” or “guaranteed savings.” A fixed supply rate can protect that specific rate from market fluctuations during the contract term, but doesn’t guarantee that your total bill will stay the same or that you will always pay less than another available option.
8. Will switching cause any interruption to my service?
In most cases, changing suppliers shouldn’t require new wires, gas pipes, meters, or other physical changes to your home or business. Your local utility continues delivering the electricity or natural gas regardless of which eligible supplier you choose. However, you should still ask when the supplier change will take effect and whether you need to do anything with your current provider.
9. Do you offer any additional benefits or services?
Some energy providers may offer additional benefits or value-added services, to help your home run more effectively. Agway provides access to EnergyGuard, a repair program that helps cover costs associated with wear and tear on eligible systems, so you pay less out of pocket for repairs*. Other companies might offer carbon offsets or monitoring tools. Regardless of which supplier you contact, it’s worth asking about any additional benefits that may be included with your contract.
Ready for a More Predictable Energy Bill?
The right energy supplier should make its rates, contract terms, fees, and renewal policies easy to understand before you enroll. Taking a few extra minutes to ask these questions can help you avoid unexpected charges and allow you to choose a plan that better fits your priorities.
Agway Energy Services® supplies electricity and natural gas to homes and small businesses in New York and Pennsylvania. In addition to receiving reliable electricity and natural gas, every Agway is also enrolled in our EnergyGuard program, which helps cover qualifying repairs caused by wear and tear on covered heating, cooling, and interior electrical systems, depending on the commodity purchased*.
That added protection gives Agway customers value beyond the energy supply itself. If a covered system needs attention, call Agway to schedule a repair.
If you’re considering switching suppliers, contact Agway to learn more and to see how to become a new customer before choosing your plan.
*Systems covered depend on commodity purchased.
