I am currently receiving offers from TPSs promising lower electricity rates. What should I do?
The earliest the Government Energy Aggregation program is likely to begin for those not already participating is June/July 2013. Consumers who decide to switch to a Third Party Supplier before the municipal program is available should consider several aspects of the existing Third Party Supplier’s offer before entering into an agreement. These may include, but are not limited to the following:
- Contract length: many TPSs require a minimum 1-year contract, while only offering a fixed price for the first six months. It is important to determine what happens to the offer rate at the end of the first six months. Some TPSs do not define this in their offers. Depending on the contract term, a customer may be prevented from getting the aggregation rate until the contract ends.
- Early termination fees.
- Pricing terms which take effect at the end of the agreed upon fixed rate (as mentioned above in #2 and/or at the end of the term), etc.
- One bill or two? Under the Government Energy Aggregation program, participants will still receive only one monthly bill and make only one payment to their respective utility. Some TPSs do not have this provision, meaning customers may receive their regular bill from their utility and a separate bill from their supplier.