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The Real Deal

Changing Energy Suppliers, Is it worth it?

Most all of us have gotten at least a phone call, if not many from Energy Service Companies (ESCO's) looking to get us to switch from National Grid or NYSEG.  They want to supply you with electricity or natural gas and they offer a 7% discount to get you to switch.  But the real deal is that the discount normally only lasts for a few months and these companies only supply your energy, National Grid or NYSEG will still deliver it.   
 
Which means you'll get one bill with two charges on it, one to the ESCO and the other to National Grid or NYSEG.    The utility companies are okay letting these smaller suppliers step-in on their businesses because they make most of their money in the delivery anyways. 
 
So, is it a good idea as a consumer to consider a switch?  If you're going to do it, now is the time.  You only get that 7% discount for the first few months, so why not get it during heating season.  Keep in mind though, when the discount is gone, you're going to be paying the going rate for the commodity...which will likely be within a few cents of what you'd pay to the Utility. 
 
Have you gone with a different supplier?  How has it worked out?   
Published Friday, December 21, 2007 4:32 PM by Jennifer Lewke

Comments

 

amused obsever said:

I've been tempted to switch for a while but, I haven't yet. I get a lot of mail advertising but they don't tell me much.  I want to know if I have to sign up for a minimal amount of time to get the discount. Can I switch again if I'm not happy? Too much missing fine print I guess, lol. I'm interested to hear from someone who has.
December 22, 2007 8:12 PM
 

NYDogBoy said:

Jen,
i'm a disabled bet and would like to enjoy some relief on my energy bill, but i suspect switching would result in minimal savings.
i would like to know of real experiences with this program.
- Dog
December 23, 2007 4:12 AM
 

Jennifer Lewke said:

You'll notice a savings for the first two or three months on the supply cost but after that, it goes back up to the going-rate which is normally within a few cents of the Utility company. That's why, if you're considering a switch now would be the time to do it, since it's heating season.  When you get an offer, make sure to ask plenty of questions.  In most cases an ESCO won't require you stay with them for a fixed amount of time (meaning, normally you can opt out at any time if you're not satisfied with savings)
December 24, 2007 8:59 AM
 

smtjboys2 said:

it is definatly not worth switching energy suppliers i was with a different supplier for two years and thought that i was getting a great deal until i talked to my mom to see what her charges were because i thought mine were rediculusly over priced and come to find out they were so if i were you i would stay with national grid.
December 24, 2007 5:10 PM
 

jhn102467 said:

Jen, I saw your report and said I need to send you my experience.  I had one of these companies call my house to switch over.  My wife told the gentelman nicley that we were not interested and hung the phone up.  The phone rang back, it was the same man.  I took the phone and told him the same thing and did the same thing.  He called back again and was very nasty to me on the phone.  I hung up on him then.  He called back and wouldnt say anything.  Good thing for caller ID.  I tried for two hours afterwards to get a hold of them to talk to a supervisor.  I havent heard back from them yet.
January 29, 2008 8:35 AM
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