July 25, 2024
Shopping for electricity for the first time can feel like navigating new terrain, but it’s a process akin to shopping for any other product. Having the right information is essential for making informed decisions. Customers need to understand a few factors like:
- Changes in utility rates
- The difference between variable and fixed rates
- Where to find assistance if needed
- The variety of products and services available
With access to this information, the process becomes much more straightforward and manageable.
States, including Pennsylvania, Ohio, Delaware, and Texas, among others, excel in their efforts to educate customers. The Public Utility Commissions (PUCs) of these states have prioritized consumer education, therefore protecting consumers.
Protection in Pennsylvania
- Pennsylvania’s PUC has demonstrated a strong commitment to consumer education through various channels, including:
- Through these efforts, the PUC educates customers about electric shopping, provides guidance on utilizing the PUC’s shopping website, PAPowerSwitch.com, and offers advice on what factors consumers should consider when making their decisions.
- The Pennsylvania Attorney General and Office of Consumer Advocate distribute shopping education materials and warn customers of what to be on the look for.
Texas’ Transparency
- The Public Utility Commission of Texas has implemented a transparent star rating system, offering customers the ability to assess retail suppliers. This transparency is crucial as it fosters trust and confidence among prospective consumers, providing them with access to comprehensive reviews of all retailers operating in the state.
- By facilitating informed decision-making, this system empowers consumers to make choices that best align with their preferences and needs, ultimately promoting a fair and competitive energy market.
- You can learn more about Texas’ system by watching REAL’s Retail Markets Forum.
Consumer Protection in Delaware, Pennsylvania, and Ohio
- Ohio and Delaware have proactively addressed consumer needs by curating lists of essential questions for consumers to ask their energy suppliers. These questions cover crucial aspects such as certification, the parameters of variable rates, the existence of introductory rates, notification procedures for price changes, and potential cancellation fees.
- By providing these resources, both states empower consumers who may not be familiar with the complexities of the energy market to begin their inquiries from an informed standpoint, enhancing their ability to make sound decisions.
Both the Ohio and Pennsylvania Public Utility Commissions offer rate change alerts to subscribed customers. These alerts keep consumers informed about developments in utility rates, empowering them to make well-informed decisions when shopping for energy services.
REAL has developed resources to fill gaps in consumer education, including:
- Energy Shopping Guides
- This comprehensive guide offers detailed steps on how to shop for electricity, providing explanations for various terms relevant to energy shopping.
- Monthly Energy Shopping Summaries
- REAL releases state-specific summaries monthly, detailing utility supply rates, the cheapest fixed-rate offer, the cheapest 100% renewable offer in each utility service territory, and a summary of value-added products available to customers.
- Summary of Resources
- This section provides additional information on energy shopping, raising awareness about energy choice and utility rates. At the top of the page, you’ll find links to materials from our Competitive Markets Forum, where the benefits of consumer education and awareness were discussed in detail.
While electricity shopping can be daunting for newcomers, consumer education is essential for making informed decisions. States like Texas, Pennsylvania, and Ohio, alongside their Public Utility Commissions (PUCs), lead in these efforts. By prioritizing consumer education, PUCs ensure access to resources like guides and monthly summaries, ultimately empowering consumers to make well-informed choices.
The Retail Energy Advancement League (REAL) is a national advocacy organization dedicated to the expansion and modernization of American retail energy markets. In many states, utility monopolies still control the electric market and customers can’t choose where they buy their electricity and gas.
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