How to Find the Cheapest/Best Energy Supplier in New York
What Is An Energy Supplier Company?
The purpose of an ESCO is to purchase electricity from a Generation Company (GENCO) in the wholesale market and then sell it at the best possible rate to the customer. However, there can be dozens of ESCOs in a power grid that trade electricity with the authorization of an Independent System Operator (NYISO in the case of New York). To know more about electricity markets in the US visit this link.Based on this complex and competitive market, an average consumer might have a hard time understanding and choosing the best or cheapest energy supplier in New York.
Here we will give you some tips to make this decision easier and give you some details on the factors that you need to take into account when choosing an ESCO. But, first, let's address a very important question.
Why Should I Switch to Electric Suppliers in NY?
There are two ways to obtain electricity if you are located in New York. One of them is purchasing directly from the utility in your local area and the other one is to purchase it from an ESCO.
There are nearly 9 utility companies in the State of New York, each of them offering electricity at different rates within a region of the State. The utility is responsible for the maintainability, reliability, and operation of the power grid installations within their territories. The utility can also sell the electricity directly to the customer.
On the other hand, there are more than 100 electric suppliers in NY and they vary from region to region as well.
When you compare electricity rates between utility and ESCOs, utility rates are usually higher. For instance, the Consolidated Edison utility charges around 10.2 c/kWh in the 10001 ZIP code. If you look further into prices offered by electricity retailers, you will realize that you could obtain prices close to 2.9 c/kWh. Doesn’t sound like much?
Imagine that your residence consumes 700 kWh per month, you could save around $50 a month which translates into $600 a year. Savings will vary of course, according to the utility, the year and your energy consumption patterns as well. However, it is almost certain that you will obtain better prices with NY energy suppliers than with utilities because that is the purpose of the electricity market, to assure competition drives down energy rates.
What Factors Should I Consider When Selecting An Energy Company In NY?
Electric suppliers in NY generally offer at least two plans of payment: fixed rate and variable rate.
Variable rate plans establish the price rate of the electricity based on the market conditions. The wholesale electricity market changes every minute due to multiple factors.
If you choose a variable plan, then you are exposed to unforeseen price spikes in the spot market that could significant undesirable surprises at the end of the month.
However, if you choose a variable plan, you might also be lucky enough to take advantage of low price seasons and obtain bigger savings. Despite that this plan changes from month to month, variations in electricity rates are generally within a certain range, unless something unusual happens in the market.
On the other hand, the fixed rate plan offers the possibility to estimate your expenses on electricity over a short or medium term. Fixed contract times are usually between 3 months, 6 months or 12 month periods and maybe even longer. The disadvantage with fixed rate plans is that the ESCO needs to take into account the risk of providing electricity at a fixed price. This increases costs.
The choice between these two options is yours.
Take into account if you are moving for a long-term period or if it is only for a short time. If it’s a long-term period, then choosing a fixed rate plan might be the best choice. On the other hand, if you are staying for a short period, then opt for a variable plan.
Since electricity prices are highly unstable, it is important that your retailer is committed to give you a good quality service.
To measure this service, you might want to ask yourself some of these questions:
The best electricity supplier will understand your needs, your patterns of consumption and budget. Based on this information the retailer will offer you a set of options or plans that suit your best interests.
Does the retailer provide enough information on supply market costs?
If you are dealing with a good electricity supplier, the company will provide you with information or data related to the status of supply costs from the sources they promote.
Is the retailer able to properly forecast wholesale electricity prices to provide the best protection on fixed term plans?
The best way to respond this question is to compare fixed term prices with other electricity retailers in the area and evaluate if there are similar rates, or if there are extravagant disparities.
Another important fact to take into account is if the retailer offers a free consultation quote. Based on your location, the company should be able to gently develop a study concerning your energy demands and how they could be addressed with the best possible plan
There may be some other factors that you should know when choosing an electricity supplier, for more information click here
How Do I Find The Best Electric Supplier in NY?
Finally, another important factor to consider, the source of electricity that the retailer promotes. Renewable energies are increasingly desired as they reduce the carbon footprint of NYC and they are price competitive with fossil fuels.
However, renewable energy prices also fluctuate across the day and change according to the power plant that is selected and the distance from this source to your location.
As one of the best electric suppliers in New York, Phoenix Energy Group is a professional company that is able to address your energy needs and selects the most appropriate renewable facility according to your location. That will reduce energy costs for you.
We also count on variable and fixed-term contracts and offer you a free quote consultation to answer your questions and help you find the best solution to supply your home with electricity. Contact us and start consuming renewable and clean energy!