Customers in the PPL territory who have not signed an agreement to be serviced by an alternative electric supplier are paying the highest electricity rates in the region. Since price caps expired on January 1, 2010 a large amount of residential and surprisingly commercial customers remain on PPL default service, in some cases paying 20% more than what is available on the competitive market.
It is important for customers to understand the benefits of shopping for supply or generation electric service. There seems to still be a misunderstanding among the masses about the new role of PPL; they are soley in the business of delivering power and not supplying power. Shopping for low Pennsylvania electric rates will lower consumer’s monthly electric bill.
Many customers reluctant to switch providers say they wish to remain “loyal” to PPL. It is important that these customers educate themselves so that they can understand that PPL does not see any profit from supplying them with default service. That money goes to 11 different suppliers in 8 states who won auctions to provide power to default customers who are slow to shop.
So what does all this mean. If you don’t shop you are paying the highest rates in the area to companies who have won an auction to supply service to you at default rates ($0.10402 for most commercial, $0.10448 residential). Those 11 companies who won contracts to supply power will see profits from the default service. If you shop the market you can save between 10-20% on your monthly electric rates and the company who you choose to supply you with power will see profits. Either way, PPL will not see profits from the supply portion (generation plus transmission) of your bill.
For a list of competitive suppliers and their current rates you can either email us with subject line (Send Rates) or join our Power Club on the right.
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With electricity competition heating up in the PPL territory, many consumers have voiced their confusion over their current PPL bill. In order for PPL electricity customers (both commercial and residential) to save money through deregulation, they have to understand what the prices they are being offered should be compared against; PPL has labeled this as the “Price to Compare”.