The summer has certainly sparked competition among alternative electricity companies offering service in the PSEG service area. Savings versus the PSEG BGS rates – the default rate PSEG charges for electricity supply service to those customers who have not shopped for lower rates – are up to 17%.
It is not surprising that competitive electric rate offers are becoming lower in the summer. The summer heat causes electricity usage to increase which in turn causes people to receive higher electric bills. Electric choice states, such as New Jersey, usually find increased power shopping during the summer months because of the higher bills. When low electric rates are available it is an easy decision for customers to make and switching activity increases.
PSEG customers, as well as other New Jersey electricity customers, have been slow to compare electric rates and choose alternative service. One of the main reasons for this has been a lack of options. However that is now changing as more electric companies have entered the New Jersey electric market with hopes of gaining market share. Particularly PSEG customes have seen the most electric choice options. Because PSEG is New Jersey’s largest utility company, in terms of customers, many competitive energy suppliers are testing the water with them before rolling out electric rate products in the other utility markets.
New Jersey electricity customers should view their utility area as a market. If you are a PSEG customer, you remain a PSEG customer even if you choose a low electric rate from a competitive supplier. PSEG continues to deliver the electricity to your house no matter who you decide to supply your electricity. They only offer default supply service (BGS Rates) for customers who have not chosen a competitive supplier.
Here are current low electric rates in PSEG: