Thousands of consumers are saving upwards of 35% on their energy bills. How are they doing this? By switching to providers in deregulated states. So, what is deregulation? Prior to deregulation, one utility managed the transmission, distribution and sales of electricity to your home or business. Today, your local wires company still maintains the transmission and distribution of your electricity, while other companies such as Ambit Energy, Ignite, and Reliant Energy handle the sales and billing of your electricity. So the infrastructure stays the same while the actual produce, gas or electricity, is sold to you at a lower price than your local provider. With most of these energy companies, when you switch there is no interruption in service and no hook-up fee. Many of the companies, if you choose a variable rate, will not make you sign a contract with no penalty if you back out of their offer. If you choose a fixed rate, you usually only have to sign a yearly contract and penalties for disconnecting depend on how long you've been receiving energy from the provider. But don't jump in head first. You want to ask providers these very important questions.
Questions to ask each provider:
1.What will I pay per "kilowatt hour" (kWh) of electricity based on 1,000 kWh of average monthly usage?
2. Does this rate include everything, including the electricity cost, the transmission and distribution charges, fuel charges, if any, as well as the monthly customer charge or other fees?
3. Is this offer a fixed rate offer or a variable rate offer? If it is a variable rate offer, how can it change and how do I find out when the rate will change?
4. Is there a contract and if so, how long is it for?
5. Is a deposit required and if so, how much?
6. What are my payment options?
7. What happens when my contract period expires?
8. What if I miss a payment?
9. Is there a penalty if I break the contract?
You also want to compare offers and make sure that the provider is on solid financial grounds. A great place to start is http://www.saveonenergy.com/?gclid=CIaekf3935ICFQQIFQodkVt8_A. Here you can find out if you can choose your energy provider and which energy providers are available in your area. Not all states, and not all areas within a state are deregulated yet.
Many of these providers offer incentives for switching over to them like points towards vacations as with Ambit Energy. When you use their energy, you earn points towards free vacations. They also offer consumers a free vacation for referring 5 clients to them. They guarantee a lower price and will pay your first monthly bill if there is any interruption in service while switching. You can find out more at http://mmv.energy526.com/ They're also in Illinois now too. Make sure to call the agent, me, to get all of your questions answered. Ignite offers lower prices than its competitors, as does Ambit Energy and many other energy companies. Many more companies with many more incentives are out there, but the key with all of them is that they're on sound financial footing. So, do your research.
Energy deregulation could save you hundreds of dollars or more every year. So its in your vested interest to find out if you too can save on your energy bills. Just make sure to do your due diligence, compare companies, and ask those very important questions listed in this article and you'll be on your way to saving money.
Mary Versteeg
Ambit Energy Marketing Consultant
www.mmv.goambit.com
A Purdue University graduate in English, Mary Versteeg teaches creative writing and speech in the San Antonio area. Currently she is writing several books from Recipes From Italy where she travels extensively, a children's fantasy book, and articles about deregulation. She is a mother of two and is now working for Ambit Energy.
