Many states and the District of Columbia have adopted legislation that allows residents the option of choosing a new electricity supplier. This customer choice program that is available in many parts of the country is the result of restructured of the energy industry and reorganization of the way in which energy is sold and distributed to residential and commercial end users.

In the past, utility companies that produced, sold and distributed commodities such as gas and electricity were federally regulated and operated primarily as monopoly businesses.

The price that was charged to consumers was determined by the utility company in conjunction with federal guidelines giving customers no choice as to where their power came from and how much it cost.

With restructured the components of energy service have been partially or completely unbundled, allowing for competition in the marketplace. In restructuring states customers may make the decision of choosing a new electricity supplier or natural gas provider from whom to buy their energy.

The emergence of restructured has opened the utilities industry to competition. There are many more energy providers vying for market share than existed when all utilities were federally regulated.

With the number of providers entering the market, failing in the market, or expanding in the market, choosing a new electricity supplier can become a daunting task. Because each supplier provider is able to attract new customers, the rates and payment plans they offer can be misleading and confusing.

Before making a change to switch your energy provider, it is important to understand how energy bills are calculated and your average demand. Start by collecting a few months worth of bills from the coldest and hottest months of the year which reflect your peak usage.

These bills will show you how many units you are using and the price you are paying per unit. Electricity is measure in kilowatt hours (kWh) and is indicated this way on your bill. Once you have an idea of how much energy you use and what you pay, you can begin contacting the various providers that service your area.

When researching competing energy companies, be sure to ask about any additional fees that may be added to the unit cost. Most suppliers require a minimum length of service and will charge a cancellation fee if you switch companies prior to the contract expiration.

If you are thinking about exercising the option of choosing a new electricity supplier, it is often a good idea to call your current provider first. If your current company is aware that you are considering changing your service they may offer you a better rate in order to retain your business.

Asking friends, family and neighbors about their experiences is helpful when you are choosing a new electricity supplier. These people are your best references and will give you information about not only costs but the quality and reliability of service.

While price is a key factor in making the choice between electricity companies, customer service is also important and may be the deciding factor in who you choose.

If you are thinking about switching from your electric company to a new electric supplier or you need additional information on Choosing a new electricity supplier visit mxenergy.com.

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Author Bio: If you are thinking about switching from your electric company to a new electric supplier or you need additional information on Choosing a new electricity supplier visit mxenergy.com.

Category: Home Management
Keywords: Choosing a new electricity supplier, energy provider, energy prices, energy assessment