For businesses of all sizes – from small businesses to enterprise-level, the Jersey deregulated market has enabled competition. Today, every business has the ability to compare energy plans from top energy suppliers and shop for the best rate available.
In most cases, businesses will be able to effectively manage and/or reduce their monthly electricity costs by switching energy plans and providers every year.
In a competitive electricity market like New Jersey, both commercial and residential customers are provided with energy choice – meaning all customers get to choose their specific energy supplier, plan and rate, and then switch – based on any existing contract terms, renewal dates and fees.
As a New Jersey electricity customer, it’s important to track your contract renewal date. When your energy plan is due to renew, it’s a good time to compare electricity rates and then switch to the best rate for your home or business. When switching energy plans, keep these 5 easy steps in mind:
This is the easy part and it starts online. Today, businesses have a variety of online websites and tools to research and compare energy providers, plans, and rates. The best way to compare providers is to use a simple website like EnergyBot. In less than 5 minutes, you can enter basic information about your business, like your zip code and monthly electricity bill, and then compare dozens of top energy suppliers in New Jersey to find the lowest energy rate.
When you are comparing electricity plans, it will pay – literally – to take time to review the plan details, contract terms, and legal copy. Energy companies may entice you with a low rate, yet the fine print may reveal that it is a variable rate – which is only applicable if you stay in a specific range of energy (kWh) usage each month. It’s also important to review the contract term, cancellation fees, and out clauses before signing up for a new plan.
It’s important to do your research and if you’re short on time, EnergyBot makes it simple. Check out this article to learn more about the different types of energy plans and rates.
In many cases, the energy supplier, broker or website that you are using to find a new electricity plan will ask you to upload your most recent electricity bill. Although this may feel a bit intrusive, it provides pertinent account information and it’s important to securing the best energy rate available for your business. Your energy bill has your business information as well as the data that outlines your monthly energy usage.
To add, your new energy supplier will require proof of your energy usage before you can switch and your electricity bill is the easiest way to meet the requirement.
If you own or manage a larger business with high energy usage (and higher monthly bill), then it may be beneficial to request a custom pricing quote. As a larger business may have much higher monthly energy usage or inconsistent energy usage, energy suppliers require a comprehensive review of your business’ energy usage to provide a custom quote on a new plan and rate. At EnergyBot, you can get a custom quote for free.
After authorizing a switch to a new energy provider, you will receive a confirmation email with the plan details and start date. It’s very important to review the plan you authorized and confirm the new start date. The transition to a new supplier will be seamless…you won’t even notice until you get the electricity bill the next month.
Utilities are the entities in charge of the operation and maintenance of the energy infrastructure, like wires and towers. The local utilities in New Jersey are PSE&G – Electric, Jersey Central Power & Light, Rockland Electric, and Atlantic City Electric.
Each utility is responsible for transporting electricity from the generators to residential homes and businesses in their specific region of New Jersey.
Energy providers in New Jersey, including like and TriEagle, are the competitive energy retailers. Each energy provider buys energy from the wholesale market (the generators) and then re-sells it to energy customers (homeowners, renters, and businesses).
In most cases, the customer (homeowner, renter, or business) signs a contract with an energy provider for a specific energy plan. The basic energy plan details the rate class, the energy rate per kWh, the contract term length (6, 12, 24, 36 months), and other contract terms like the cancellation fee policy.
In the late 1990’s, New Jersey joined over 15 eastern and midwestern states to deregulate the energy market in the state. New Jersey’s energy deregulation legislation detailed the creation of a competitive energy market – forcing the separation of utilities and energy suppliers.
For New Jersey energy consumers, the BPU launched NJ Powerswitch, a consumer facing website with detailed information on energy deregulation, how to shop for energy, including supplier lists, explanations and helpful tips.
In most cases, New Jersey deregulation introduced a new era where business customers and homeowners could take advantage of the competitive market and more effectively manage and reduce their monthly electricity costs by switching energy providers, plans and rates, as needed.
In summary, the Board of Public Utilities (BPU) is the New Jersey state agency with the authority to oversee the regulated utilities, which in turn provide critical services such as natural gas, electricity, water, telecommunications and cable television. The law requires the Board to ensure safe, adequate, and proper utility services at reasonable rates for customers in New Jersey.
The BPU addresses issues of consumer protection, energy reform, deregulation of energy and telecommunications services and the restructuring of utility rates to encourage energy conservation and competitive pricing in the industry. The BPU also has responsibility for monitoring utility service and responding to consumer complaints.
Located in the New England area, the state of New Jersey is the 11th most populous state with nearly 9 million residents, according to the latest US Census. New Jersey is the most densely populated U.S. state with 90% of the state’s inhabitants living in a defined urban area. With a very high median household income New Jersey is the 2nd wealthiest state by median household income.
According to the SBA, New Jersey is home to over 820,000 small business companies which account for over 98% of all the state’s businesses. As one of the leading industrial states in the country, New Jersey is also the largest chemical producing state in the nation. Along with most of the U.S., New Jersey boasts a growing economy and an unemployment rate just under the national average. New Jersey small businesses also number 1.7 million total employees, which is 50% of total workers in the state, led by the professional services, public administration as well as the retail trade industries.
Energy suppliers offer two different types of plans for residential and business customers: a fixed-rate plan or a variable-rate plan.
Each type of plan has its respective pros and cons. As a New Jersey customer, it’s important to understand the two types of plans before signing up for an electricity plan for your home or business.
The simple definition of a fixed-rate plan is that you are signing a contract with an energy supplier that offers a fixed-rate – meaning that the rate will remain constant for the term of the contract. Regardless of weather, natural events like tornados, or market volatility, your rate will not change. In most cases, fixed-rate plans have a term length of 6, 12, 24, or 36 months.
The simple definition of a variable-rate plan is that you are signing a contract with an energy supplier that offers a variable-rate – meaning that the rate may change on a monthly basis based on market factors. Variable-rate plans offer more flexibility but also present more volatility in pricing which may impact your monthly electricity bill.
It is important to audit your energy usage and then select the right plan – a fixed-rate plan or a variable-rate plan – before signing a contract with an energy supplier.