What Is a Third-Party Electric Supplier?

If you live in an area that has a deregulated energy market, you may have access to 3rd party electric suppliers.

What is a 3rd party electric supplier? We can help answer that question by describing them and by explaining the benefits they bring to the market.

A third-party electric supplier is a company that sells electricity to residential and business customers but is not the incumbent utility. They play an important role in increasing consumer choice and may be able to offer lower prices than the utility.

Which States Have Third-Party Electric Suppliers?

In a deregulated market, there are differences between energy suppliers vs utilities. Utilities transport electricity. Energy suppliers sell power and provide other services to customers. More than half the states in the country have deregulated their electricity markets to allow 3rd party electric suppliers to serve customers. According to the EPA, the following states currently offer energy choice to residents:

• California
• Connecticut
• Delaware
• Illinois
• Maine
• Maryland
• Massachusetts
• New Hampshire
• New Jersey
• New York
• Ohio
• Pennsylvania
• Texas
• Washington, D.C.

Benefits of a Third-Party Electric Supplier

What benefits do 3rd party electric suppliers bring to you? Giving residential customers choices and potential savings can transform markets and bring benefits such as:

• Giving you control over the cost of electricity through competitive prices and contract terms.
• Providing you with better customer service.
• Minimizing the risk of surprise charges and hidden fees.
• Offering innovation when it comes to designing contract options.
• Handling the complexities of procuring power.

What Third-Party Electric Suppliers are Available in Your Area?

Making a good choice among 3rd party electric suppliers may take some research on your part. You may be able to  get better rates and contract terms that fit your power usage patterns, and superior service.

1. Find licensed 3rd party electric suppliers for your area. Public Utility Commission websites and City or utility company sites usually provide current listings.
2. Visit each electric provider’s website to learn more about their business, how long they have been serving customers, what their power sources are and options for contract terms.
3. Visit ratings sites to see how consumers rate the quality of their customer service.
4. Study your power consumption needs. There are options that may save you money, depending on your usage patterns. Or maybe you want renewable energy options. Learn about calculating electricity charges. Know what you want so you can identify the best deal for you.
5. Most importantly, study the contract terms closely, as they are not one-size-fits-all. Make sure you understand the details before you commit.

What is the Third-Party Electric Charge on Your Utility Bill?

You may already be doing business with a third-party supplier. Take a look at your bill and see if any third-party electric charges are listed. Seeing these charges does not necessarily mean that you are paying more for your electricity. They are merely a breakdown of the different charges.

The best way to understand electric charges is to look at the price per kilowatt hour. When in doubt, contact the company listed. While you are at it, take a look at your alternatives. Switching energy suppliers is straightforward. Moving to a different third-party electric supplier may save you money.

How to Switch Third-Party Electric Suppliers

Now that you know what a 3rd party electric supplier is, take the time to examine your options. These are the important considerations to evaluate before switching electric providers. If you do decide to switch, the process is typically easy. Be sure to ask about and get a good understanding of:

• Contract term: How long will it run?
• Minimum bill amounts: What is the minimum you will have to pay every month?
• Fixed vs. variable rates: Which makes the most sense for you?
• Customer service: How can you reach them and how fast do they respond?
• Billing: How will you be billed? How often?
• Early Termination Fees (ETFs): What will you pay if you end the contract early?

See if Constellation is a Good Fit for Your Electricity Needs

We invite you to check out Constellation’s ratings for customer service and then explore our website. You’ll learn about our commitment to customers, and information about our many contract options. You can get the details about Constellation’s electricity plans by state.