4 common misconceptions when switching from your utility company to a new energy supplier.
Switching from for utility company to a new energy supplier does not interrupt your service in any way. Here are 4 common misconceptions.
So, you’ve found a better rate for your electricity outside of your utility company. You could potentially save thousands of dollars every year by making this switch. Then you stop and think, “I like my utility company. Won’t they be mad if I leave them? I have been with them for years. I’ll be the last one to have power restored in case of an outage. It’s probably safer to just stay with them. I don’t want my service interrupted.”
In this article, we will explore common misconceptions when switching from a utility company to a supplier. There truly is no risk when switching for lower rates. A utility company will still provide the same great service they always have, and all you will see is the savings.
Myth #1: Your utility company will give you poor service if you switch
Your utility company will not treat you differently or poorly, allow for interruptions of service or fail to respond to outages and service requests if you leave them and switch to an alternative electric supplier.
Even in deregulated electric markets, electric utilities are regulated with regard to electric delivery. Utility companies are responsible for providing the same level of service for all electricity users and are charged with maintaining the entire grid and its entire delivery infrastructure, including wires, poles, and transformers, regardless of which electric supplier customers buy their power from.
Myth #2: Your electric service could be temporarily interrupted if you switch
There will never be an interruption of service when you switch from your utility company to an alternative electric supplier or from one electric supplier to another. Although switching might not be immediate in some cases — it could take a billing cycle or more to complete the switch — the transition is seamless. In fact, the only two things that might change are how much you pay for electricity and how you’re billed.
In some markets, you may get separate monthly bills: one for the amount of electricity you use (from your electric supplier) and one for the distribution of the electricity to your home (from your utility company). In other markets, you might get only one bill. In that case, your electric supplier will “piggyback” its supply charges onto the distribution bill from your utility company, showing up as either a detailed list of charges or as a single line item charge, depending on what the utility company allows.
Myth #3: If you switch and the power goes out, nobody will respond
Your utility company remains responsible for responding to power outages. That means that even if you switch to an alternative electric supplier, you’ll be able to call your utility company just as you always have, at the same number, to report an outage. When you switch, your new electric supplier doesn’t take over maintenance and outages and the utility company won’t leave you hanging because you left them.
Myth #4: The utility company will be mad that I switched
Utility companies are regulated by the state government (typically through public utility commissions), and their rates are controlled. Typically, utility company’s profits come from the delivery of your energy (known as “transmission and distribution”), not from the supply of energy. Switching to a competitive supplier will not harm your utility company.
Hope this was useful!
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Director of Business Development at Zentility
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