What Does Switching Your Energy Supplier Mean?

The Electric Discount and Energy Competition Act (EDECA) enables you, as a residential energy customer in New Jersey to shop for electric and natural gas supplies (many other states are eligible as well).

Your energy invoice separates the supply portion from the delivery portion of your bill. Your electric service includes three primary components, the Generation or production of electricity, the Transmission or movement of electricity from the source to a point of distribution, and Distribution, the delivery of the power to your home.

When you shop for an electric supplier, you are selecting a company that is responsible for the electricity generation portion of your bill.

• Generation: The production of electricity.
• Transmission: The movement of electricity from where it is generated to the point of distribution.
• Distribution: The delivery of electricity to your home or business.

With the supply portion of your bill open to competition, you now have the option to compare prices from “third-party suppliers” against what your utility charges you for kilowatt-hours or therms.

By comparing suppliers, you now have the opportunity to select a supplier based upon your own criteria. Whether you wish to choose the least expensive supplier or the supplier who uses the most renewable energy is up to you.

Regardless of your selection of supplier, your local electric or natural gas distribution companies still deliver the supplies through wires or pipes – and respond to emergencies.  Your service will be the same. The only thing that is different is that the energy supply is now purchased through a different company.

Purchasing your energy supplies from a company other than your electric or gas utility is purely an economic decision; it has no impact on the reliability or safety of your service.

Where it may become confusing is that the invoice for your power may still come from your current utility, and the distribution will still be handled by your utility.  The part that you are ‘switching’ has to do with energy generation that is brought to your utility.

 

Shopping for Third Party Energy Suppliers


New Jersey residents can shop for the lowest price with third-party suppliers. Local electric or natural gas distribution companies still deliver the supplies through wires or pipes – and respond to emergencies – but the supplies themselves are purchased from other companies.

Purchasing your energy supplies from a company other than your electric or gas utility is purely an economic decision; it has no impact on the reliability or safety of your service.

Source – State of New Jersey Board of Public Utilities