Pennsylvania consumers who receive their electric bills from Pennsylvania Power & Light, PPL, are once again looking to competitive electricity suppliers to lower their energy costs. Competition has forced prices down resulting in a high savings potential for residential consumers who are still on the PPL default rate plan. PPL energy choice is bringing greater flexibility to the residential electricity market as suppliers are offering low rates, long term contracts, and renewable energy rate products.
When the PPL service area opened up for competition in 2010 many customers were quick to sign contracts with Pennsylvania competitive electricity suppliers who were offering savings off of the PPL price to compare. The PPL price to compare is the rate that a customer, who does not shop for a competitive price, pays for electricity for generation and transmission services. Competitive electricity suppliers offer rate plans that replace the price to compare. In 2010 it was common for these competitive suppliers to offer rates 10-20% below the PPL price to compare, offering customers new to the the concept of energy choice a high incentive to switch electric suppliers. When the savings between the competitive prices and the price to compare started to diminish in 2013 and 2014, the number of customers participating in the electricity choice market also became lower. The percentage of residential customers serviced by PPL who were purchasing their power from a competitive supplier went from 51% to below 43%, meaning that some customers actually went back onto the PPL default rate after previously buying their power from an alternative supplier.
Now that the competitive rates are once again lower than the default rate, PPL customers are starting to shop again in order to save money on their electric bills. Finding the lowest PPL electricity rates has never been easier now that comparison sites show prices and terms easily on a online platform. While finding the lowest electricity rate is important, is also noteworthy to consider the length of the contract. Many suppliers try to entice new customers by offering a low one month intro or variable rate. These rates often go up considerably after the first month. It is recommended that customers lock in low fixed rates of at least six months.