Reading PA No Deposit Choices Among Electricity Providers

by admin on January 29, 2010

Recently, the electricity providers market in Reading PA has been deregulated which means that electricity providers can come in to the city and compete for your business.  No longer will you be forced to pay high rates to the companies that have been monopolizing electric service.  Now, you will be able to choose among several electric companies that offer cheaper rates.

WHEN SWITCHING ELECTRIC COMPANIES, DEPOSITS ARE A PROBLEM FOR MANY CONSUMERS

While being able to choose an electric provider that charges cheaper rates is great news, many residential and commercial consumers face problems when it comes to deposits.  You may have bad credit, or perhaps you have never established any credit at all.  Deposits for residential electricity service in Reading PA can be as high as $500, and commercial customers with bad credit may be charged as much as 3 months worth of average electricity bills.

There are other options.  You may choose an electricity provider that operates on a prepaid or pay as you go plan.  This sounds great, especially when you learn that you can be hooked up for as little as $99.  However, you will probably not be made aware that this does not go toward your first months bill, and that you will be asked for an additional $200 to $400 shortly after if you want to keep your electricity on.

If you decide to go the pre pay route for your Reading PA electric services, be aware that charges are not based on the electricity you actually use.  Most likely, your rates will be based on the electricity you used last year, or historical usage.  This means that even if you did not live in the Reading PA home you now live in, you will be prepaying for whoever lived at the address previously.  If they used a good deal of electricity, you will be paying based on that fact.  A prepaid electric rate is substantially higher than a traditional electric company charges, so be aware of the fact that your monthly charges will be extremely high.

In nearly any situation, it is preferable to figure out a way to come up with the deposit and go with a traditional electricity provider.  In Reading PA you will save money over the months and get your deposit back at the end of the year.  You benefit in other ways too; you have the opportunity to build your credit history, and you also demonstrate that you are someone who pays their electric bill on time.  Once your credit history looks good, you may not be required to pay a deposit next year when you sign up for Pennsylvania electricity service.

EXPLANATION OF THE DEREGULATED READING PA ELECTRICITY MARKET

The competitive energy market has been set up by the state of Pennsylvania in a way that the companies that monopolized the market must keep their electricity rates at a certain price.  When smaller providers come in to Reading PA to compete for your residential or commercial business, they can do so without worrying that they will be priced out of the market.

Allowing deregulation is beneficial to you, as the electricity market tends to become cheaper and more affordable.  There may also be new offers of terms and prices that have not been available to you before.  Reading PA consumers have the option of choosing between variable rates and fixed rates, which generally range from 1 to 5 years.  A fixed rate means the price remains constant, and will not change during the length of your contract.

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