Finding an Affordable Electricity Provider in Erie, PA

by admin on January 28, 2010

If you live in Erie, PA you are most likely already aware that starting in January 2010 your electricity rate will be rising substantially. The government mandated price cap is going away, which is why the electricity rate will be so high. While your electricity rate will be noticeably higher, several companies that offer competitive electricity rates will be coming into Erie PA that will allow consumers to choose who provides their electricity in order to get a cheaper rate.

IS A DEPOSIT REQUIRED TO SIGN UP WITH AN AFFORDABLE ERIE PA ELECTRICITY PROVIDER?

It is likely that you will be asked for a deposit if your credit is bad or you have no established credit. There will be choices, as some of the electricity providers coming to Erie may offer pay as you go electricity rates. However, you should be aware that there is a catch when you sign up with these companies. A prepaid pay as you go plan will not require a deposit, but you will find that in order to continue service, you will have to pay a substantial amount of money. These companies hook you with a low teaser introductory fee.

Most likely, you will see advertisements to the effect of “Pay only $99 to begin service” or something similar. What the consumer does not realize is that this fee frequently does not apply to the first months service, so soon after you will be asked for as much as $500 in order to keep your electricity on. These high rates are inflated by about 7 cents, because the electricity provider offering the pay as you go plan is taking on a credit risk. In the long run, customers are much better off avoiding the prepaid electricity providers and shopping around a few of the traditional electric providers in the Erie area.

When you shop around, you may be able to find an Erie PA electricity provider that offers a lower deposit that you can afford. This benefits you by allowing you to establish credit over the next year, and demonstrating your ability to pay.

HOW IS THE DEREGULATED ERIE PA ELECTRICITY MARKET SET UP?

The competitive energy market in Pennsylvania has been established in a way that the companies who have monopolized the market must keep their rates static, or at a certain price. This allows competing companies to come in and attempt to get your business by offering lower rates. These smaller electricity providers can compete for your residential or commercial business accounts without the worry of being unable to compete with other providers in the Erie PA market.

When Pennsylvania allows deregulation to take place it allows the energy markets an opportunity to become cheaper and more affordable. You will be able to choose whether you want variable prices of a fixed electric rate. When you choose a fixed rate, your electricity rate is guaranteed to stay at the same price for the duration of your contract. Several fixed rate terms in Erie PA allow you to choose from a 1 year rate up to a 5 year fixed rate.

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