Electricity customers in the Philadelphia area who have not taken the time to learn about electricity deregulation and choice will see their electricity bills rise on April 1. PECO Energy, the local utility for the area, recently announced that their default price to compare electric rates will increase for both residential and commercial customers.
The electricity Price to compare is the official term that the Pennsylvania Public Utility Commission uses to describe default rates, or the electric rate consumers who have not chosen a competitive energy supplier pay for electricity generation supply service. Customers can avoid the increase and find savings between 10-25% by shopping and comparing low electric rates in PECO.
Despite the large savings available, many PECO business and residential customers have still not taken the time to compare electric rates and lower their electric bill. Much of the hesitation centers around confusion and not knowing who to trust. With so many competitive electric companies it is sometimes hard to know who is offering true savings and who has hidden charges. Business customers should work with an energy consultant who they can trust and will provide a true apples to apples savings. Residential customers are better protected by the Pennsylvania Public Utility Commission. The state ensures that all residential rates are an exact comparison to the price to compare. However, residential customers should worry about variable rate offers as these can increase from one month to the next without any cause or reason other than the energy supplier wants to make more money. Fixed rates, on the other hand, lock in your rate so that you know exactly how much you will be paying to light, heat, and cool your home.
Many variable rate electric companies will inch their prices up after a customer has been active for several months because they feel the customers has fallen into a routine of paying their bill without checking the rate.