Scranton Pennsylvania No Deposit Light Companies

by admin on January 29, 2010

In Pennsylvania, the electricity market is being deregulated which means that other electricity providers will come in to Scranton PA to compete for your service. Residential and commercial customers will be able to choose the service they want, without the incumbent provider monopolizing the market. It is exciting that consumers have affordable options, but deposits often become an issue.

CHOOSING AN ELECTRICITY PROVIDER IN SCRANTON PA

One major problem when switching electric companies for many people is the deposit required. You may not have ever established credit, or you may have bad credit. Because of this, most Scranton PA electricity providers will require a deposit. You will likely be questioned about your previous payment history and other things before a new provider will take you on as a customer.

Alternately, you may have the choice of choosing a prepaid or pay as you go electricity provider. While they won’t require a deposit, you will be asked to pay a fee upfront, usually around $99. You may assume this applies to your first months electricity bill, but soon you learn that unless you pay an additional $200 – $400 or more, you will not have service. These types of electricity offers sound great, until you learn how they really work.

Using these Scranton PA prepaid electricity providers, your monthly utility charge will be based upon historic usage – even if you didn’t live at your current home one year ago. Do you really want to pay based upon a previous occupants electricity usage? These companies usually have a very attractive “hook” to reel you in, but it usually isn’t what it appears to be in the beginning.

Usually, the best thing you can do is determine a way to come up with the required deposit and use a traditional electricity provider. Over the next year, you will be able to prove that you pay your bills on a timely basis. You will also build up a good credit history. Demonstrating your ability to pay and improving your credit means that it is likely no deposit will be required of you next year.

FACTS ABOUT THE DEREGULATION OF ELECTRICITY PROVIDERS IN PENNSYLVANIA

Competitors are able to come into the Scranton PA electricity market because the government has created a set price for the companies who monopolized the market. Now, smaller companies can come in and offer lower rates to compete for consumers business.

Consumers of Scranton PA electric will be able to choose from variable or fixed rates. Fixed rates vary depending upon the provider. The most common terms available are 1, 2 and 3 year terms. This means that for the length of your contract, your rate will not change.

The bottom line is that the sooner you sign up with a competing electricity provider, the sooner you will see a savings on your electric bill.

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