FINDING CHEAP ELECTRICITY PROVIDERS IN LANCASTER PA
As a resident or commercial business owner of Lancaster PA, you probably know that beginning January 2010 your electric rates will be increasing substantially. Electricity rates will be very high due to the government mandated price cap going away. Smaller competing companies will soon be coming in to Lancaster PA to offer electricity at competitive rates, so that you have a choice in who provides your electric service, and how cheap your rate is.
DO YOU HAVE TO PAY A DEPOSIT IN ORDER TO SWITCH TO AN AFFORDABLE ELECTRICITY PROVIDER?
The truth is that most Lancaster PA electricity providers will require a deposit unless you have good credit. Those with no established credit or a history of bad credit will most likely be required to pay a deposit. This can be expensive, sometimes as much as 3 months worth of electricity bills. You may be looking at paying a deposit of as much as $500 or more.
However, you will have options available to you. Some electricity providers work on a prepaid or pay as you go plan. While this sounds appealing to many people, you should find out exactly how it works before signing a contract. Most prepaid Lancaster PA electricity providers will sell you on the small fee to sign up – just $99 or thereabouts. Shortly afterward, you will likely learn that in order to continue service, you must pay an additional $200 – $400 or more.
These prepaid plans are also based on historical electric usage, not actual usage. Monthly bills will be based upon the amount of electricity that was used during the same month of the previous year. This applies whether you lived at your current address one year ago or someone else lived there. If you did not live at your current residence, you will be charged according to the electricity usage of the former tenant. These companies may not be who you want to provide your Lancaster PA electrical service after all.
It is really beneficial to those who do have bad or no credit to try to come up with a deposit and go with the traditional electricity providers. This gives you the ability to prove that you do pay your utility bills on time, and to build up some good credit for yourself. You may get your deposit refunded at the end of a year as well, and not have to pay another one when a new year rolls around. This way, you can choose a provider who offers a cheaper rate, and not get taken for a ride by prepaid companies.
HOW DOES THE DEREGULATION OF THE LANCASTER PA ELECTRICITY MARKET WORK?
Basically, the Lancaster PA electricity providers who have been monopolizing the market for so long will not be able to do so. Their rates will become static, or set at a certain price. This allows smaller, more competitive companies to come in to town and compete for your service without the fear of the being unable to compete with the big companies.
By Pennsylvania allowing deregulation to take place, consumers can enjoy a chance to choose their own electricity provider, which means cheaper rates. You also have the option of choosing between variable and fixed electricity rates. If you do choose a fixed rate plan, your Lancaster PA electricity rate will not change for the duration of your contract. Usually, consumers have the option to choose a fixed rate plan anywhere from 1 year to 5 years.