March 24, 2015

Alternative Energy Providers – Too Good To Be True?

There has been quite a bit of controversy in recent months surrounding the spike in people’s energy bills in the Pennsylvania area. When you are heating or cooling your home, it is important to do an analysis of your utility bill periodically.
Over the last year or two, Pennsylvania residents have been switching to alternative energy providers in search of cheaper rates. So, why the spike in their bills?

The Story

The energy supplier scandal revolves around variable rates, or rather, rates that increase or decrease depending upon the overall marketplace. Most Pennsylvania residents were unaware of this fine-print condition when they signed up with these alternative energy providers. But, in actuality, and much to the dismay of Pennsylvanian customers, variable pricing is completely legal.

All About Variable Rates

With variable pricing (as opposed to fixed pricing) rates are constantly changing based on market conditions. Meaning, if market prices increase, your utility rates increase. The initial draw to variable pricing is its incredibly low cost. However, most customers who sign up with alternative suppliers soon realize the drawback – most alternative energy suppliers only offer variable pricing.  You can find a complete list on alternative energy suppliers and whether they offer variable or fixed rates by visiting papowerswitch.com

Balancing Your Options

When shopping for energy providers, residents of Pennsylvania essentially have two options:

  1. Stick with PECO – PECO is the default energy supplier in Pennsylvania. Along with fixed rate guarantee’s, PECO offers many discount and rebate programs their customers.
  2. Alternative Energy– If you really want to look in to alternative energy suppliers, you should compare rates via papowerswitch.com. You also need to be sure that the fixed rate you are signing up with is guaranteed for the life of the contract. You should also ask questions regarding the terms of the contract; eg: what happens when the contract is up.

In our professional opinion, we don’t believe switching to an alternative energy supplier is worth it. Variable rates fluctuate from 10% to 100% higher than average rates. If you are with PECO and have questions about your bill, you have the ability to request an audit – just to make sure they are charging you for actual readings instead of estimated readings.
This winter has been an exception in temperature drops. It’s best to be prepared in advance and know how you are being charged before any spikes. With summer in our not-so-distant future, you should consider getting a jump-start on energy savings by scheduling your air conditioning unit maintenance. For more information on maintenance services, call:
610-431-1616 (Chester County, PA) 610-565-9999 (Delaware County, PA) 610-879-0511 (Montgomery County, PA) or click here to speak with an expert HVAC technician at MoreVent Heating, Air Conditioning And Plumbing
 
Disclaimer: MoreVent has no affiliation or partnership with PECO Energy Company. This content is based solely on MoreVent’s professional experience.

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