In states that have legalized energy deregulation, you may have third-party energy suppliers. These individuals often go door to door, hoping you will sign up for your service. They may make you many promises that often turn out to not be true. If someone comes to your door and is wanting you to switch to their third-party energy company, you should be wary. Here is a bit of information you need to know about third-party energy suppliers and why you should beware of them.
What is a Third-Party Energy Supplier?
A third-party energy supplier is a company who buys energy in bulk and then resells it to residential customers. These types of companies typically go door-to-door during the winter and summer months, when energy bills are at their highest. These people knock on your doors, promising lower rates if you switch over to their company. Their biggest sales pitch is that they get bulk pricing from companies like AEP because they have so many customers. Since they get bulk pricing, they claim that they can offer you cheaper energy rates than the traditional energy company in your area.
Is It Worth Switching to a Third-Party Energy Supplier?
If you are considering switching to a third-party energy supplier, you need to be very careful. While the rates might look cheap during a sales pitch, many customers find out later that the rates are actually higher than what they were paying before. You get locked into a contract and then experience rate hikes immediately after signing up. Sometimes rates can be twice as expensive as your original bill. Third-party energy suppliers often charge a delivery fee as well, which further increases the cost of their product. The rates shown during a sales pitch represent a small portion of users who may benefit, rather than the bulk of users that sign up for the service.
Why Do Third-Party Energy Suppliers Exist?
Third-party energy suppliers are only present in certain states. Ohio and California are a couple of the states that allow them to operate. Sometimes in apartment complexes, they are your only option for energy. Third-party energy suppliers are allowed to prevent a regular utility company from having a monopoly on service. This allows residents the opportunity to pick a company and compare rates.
If you are looking to save on your energy bill, switching to a third-party energy supplier may not be the best option. In many cases, these services charge more than traditional companies. A better option is to have your heating or cooling unit inspected and cleaned to ensure it is operating efficiently. Here at Buckeye Heating and Cooling, we can help with all of your heating and cooling needs. Learn more by visiting our blog.