Alternative Energy Supplier – Should You Switch?

The Bergen Record recently highlighted the advantages and potential pitfalls of selecting a competitive energy supplier. There were two important takeaways from this article. The first is that the utility does not consider whether it provides the supply when responding to calls for service. The second is that users should take care when selecting a provider and sorting through the plethora of mailings, calls, and visits by competitive suppliers. While these points are certainly helpful, there are additional factors worth considering when switching from the utility to a competitive supplier. One of the companies I researched has a great track record. Here are the questions you need to ask.

Is the supplier based locally? Customers will receive the most attentive service and obtain the most clarity in pricing from companies that are based in the local community. Marathon Energy has been serving the greater NY market for 16 years and has built its reputation on its straight forward pricing, accessible customer service and an offering of a broad base of energy products. If a provider is only selling natural gas or electricity or is based in a different region, there is little incentive to develop positive awareness and brand recognition.

How transparent are the competitive supplier’s rates? The historical residential pricing comparisons should be published for all current and potential customers to view. To our knowledge, Marathon Energy is the only company that offers clarity in historical pricing.

As mentioned in the Record, read the fine print.  Many companies rely on teaser rates, introductory pricing, sign up bonuses, or post contract continuity in hopes of converting customers who do not follow the markets closely. These rates can be substantially above the utility rates. Be especially aware of low introductory rates. Supply margins are thin so if a provider is offering deep initial discounts, they are likely to disappear in the second month as the supplier would be taking a loss on the initial discounted rate.

Does the supplier give back to the community? Marathon Energy donates $15 to the Center For Food Action for every new customer that enrolls via our ad on ridgewood.tipsfromtown.com. Most competitive suppliers are focused only on signing up customers with no concern for local causes.