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THE ABC's OF ENERGY DEREGULATION & SELECTING A REPRESENTATIVE

The ABCs of energy deregulation, the importance of energy brokers/agents and how to select one. Money savings are there, just need to be careful and make certain you've done your due diligence.

By now, most of us are aware that our gas and electricity has been deregulated in NJ since 2000. What that basically means, is that there are 2 parts to every person's bill, first is the supply, or in JCP&L territory, BGS which stands for Basic Generation Service and is approximately 60% of your bill, and second the delivery charges.

The first thing you must understand is that for better or worse, JCP&L will  always be your delivery company unless you move out of their territory. It is their lines and meters and they are the only ones who can turn you on or off and they will continue to bill you the way they always have. The only thing that will change is a line item on the bill that identifies your supplier. Not only that, JCP&L will also provide you with their rate to compare, which they do not do for you today as a customer, so you will always have a way of comparing how your new supplier is doing. 

So, now that you understand this part, let's consider what your options are. There are many retail energy providers (REPs) operating in the state of NJ. That means we the consumer have choices, which is good. However, since there are so many, it can get a little confusing and a bit daunting. There are things to know like when to use a variable or fixed rate agreement. Whether a price includes all relavent costs like SUT, transmission and losses among others. As with anything, it is always wise to seek the counsel of professionals or experts in the field.

Should you consider working with a professional, it is important to know that not all energy brokers/agents/reps are the same. The greater majority represent one company and are supplier agents. Due to this, they are only capable of providing you one quote from one supplier and many times do not provide you with all possible options as well. While many can still provide you with a savings over JCP&L, they may not necessarily be the best available price out there either. 

Now there are some energy brokers who represent multiple suppliers. This provides the consumer with a one stop shop to get multiple energy rate quotes. Typically, this type of agent is independent of the supplier and is considered a Consumer agent/representative. This type of energy broker's first consideration is his client and their interest as the electricity is identical from ALL the different suppliers. Additionally, representing multiple suppliers has tremendous benefits for the larger energy consumers, as we are able to conduct reverse auctions that helps bid down energy rates. 

So, hopefully you learned a thing or two from this and have decided to make the switch. If so, then grab your gas and electric bills and contact us for a free evaluation and rate quote today. What are you waiting for, it's free and there are no obligation to find out your options. Look forward to hearing from you. 

Andrew Kurywczak - The Energy Mizer

PS - One of my suppliers has a special offer going on for switching. I highly recommend them for small business and residential energy consumers. They have outstanding rates and are giving $50.00 just for making the switch. To check it out go to www.napower.com/186078



 

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

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