Think Twice Before Choosing a Reduced Electricity Offer

Since the start of 2011, many homeowners in Ohio have received offers from electric suppliers of reduced rates on electricity charges after signing a one- or two-year contract. Ohio law allows for competition on electric supply, but beware of what you are agreeing to.

Standard 3-prong electrical outlet
Reduced costs on your electric bills sound great, but examine each offer closely.

“Many people don’t realize that there are three components to their electric bills: generation, transmission and distribution charges, all of which are priced at different rates,” says Toni Winston, president of Tiburon Energy. “Many offers don’t specify the exact component(s) they are reducing. Even when the offers are specific, the changes don’t have a real savings effect.”

The best way to lower your electric bill is to simply use less electricity. Switch to more-efficient CFL light bulbs, turn off lights when leaving a room and raise the thermostat temperature when running the air conditioning during the summer months.

Kentucky does not allow competition for electric or natural gas supplies, while Indiana allows competition only for natural gas supplies.

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