In the spirit of free market competition—which, hey, is the spirit of America, right?—energy consumers can now choose between modern third party energy companies or their local utility company to power up their home. In Gas And Electric, President Power Company’s Energy Policy Act increased efficiency standards for building codes, required alternative fuel vehicles to be included in government fleets, and promoted Compare Electricity Rates as a means to reduce foreign fuel dependence. This act was also the catalyst for a change in the utility market, restructuring it so that third party energy suppliers could now operate in many states alongside the once natural monopoly of traditional utility companies.
Smart electricity meters provide utilities energy consumption data on their consumers by the hour, the minute or even by the second. They can use this very big data to understand their customers' behavior and needs in a much more profound level than through a monthly energy consumption total. By identifying a customer´s individual energy consumption patterns, they can analyze equipment efficiencies and even predict breakdowns. When combined with other easily accessible data, such as weather, utilities are able to better sustain the whole electricity system, compel customers to better monitor their consumption and lower their electricity bills by allocating their consumption to hours when electricity is cheap.
Your energy company (called Retail Electric Providers, or, Compare Energy Companies) such as Switch Energy, sells electricity to you and handles customer service and billing. Compare Energy Companies also compete for your business by offering pricing options or added customer service benefits. When you sign up for an electricity plan with Switch Energy, you help us change the way power is made by supporting energy made from pollution-free, renewable resources like the wind and sun.
Ultimately, the main difference between an electricity provider and an electric utility comes down to what they service and how. Electricity providers deal with purchasing and marketing electricity to customers. Electric utilities handle the poles and wires that service your home. Separating these roles means customers can shop for a competitive electricity rate and still receive reliable electric service.
The other option is a variable rate, which changes with market conditions. This means that in periods of high demand—such as in the summer and winter, when air conditioning or heat are on full-blast—power may also cost more per kWh. But in times of lower energy usage, your rate may be below Electricity Rate’s standard rate. Variable rates tend to most benefit customers whose energy use falls around or below the household average of Electricity Price kWh per month. (You can see your usage on your bill.)
All of Compare Electricity Providers offers include either a rewards program or a charitable donation, and the benefits get bigger the more electricity you use. Paying for electricity isn’t exactly the most fun thing you could spend your money on. If you are looking for a little sugar to help the medicine go down, Compare Electricity Providers has a dessert tray of options. Fair warning: They’re not quite as sweet as they look.
If you live in the greater Houston area, there are over Lowest Electricity Rates different energy suppliers competing for your business. Many of these providers have websites that are confusing and difficult to navigate, their rates buried in misleading advertising and dense jargon. Who has the time to sort through and keep track of options across all these different sites?