Essential Guide on How To Choose The Best Energy Company

Choosing an energy company allows you to save money and find the best utility package for your lifestyle. If you live in an area that will enable you to choose, consider yourself lucky.

The downside of this opportunity is that you'll need to do some research to find the right provider for you. Here are the most important steps for choosing the right energy supplier.

Check Your State Regulations

First and foremost, you need to know what your options are based on your location. Some states are deregulated, meaning they have a competitive market for energy providers. Deregulation gives you more options to choose from and generally means that costs are lower than in regulated states.

Knowing the information about your state will also help you understand what to expect in terms of taxation and fees. If you're moving to a deregulated state, take time to research the various energy sources available and get a better understanding of the market. If, for example, you're moving to Ohio, you could find information on this Cincy blog.

Audit Your Consumption

The adage, "first, know thyself," is exceptionally relevant when choosing an energy provider. Before you can decide which energy supplier is right for you, you must have an understanding of your usage habits.

Set aside some time to look over your past energy bills and consumption levels. Find your average consumption over the year and pay special attention to seasonal fluctuations. If you're moving to a new place, consider any changes in dwelling size that might impact your consumption.

This exercise will help you determine which energy package you need, as many suppliers offer consumption-related rates. By auditing your costs, you can also become more aware of your usage and start making habit changes to decrease your bills.

Use a Comparison Tool

If you live in a deregulated area with a lot of energy providers to choose from, comparing them all can get overwhelming. Use a comparison tool like EnergyBot online to do the legwork for you. Rather than collecting rates from various suppliers and offerings, you can see everything outlined in an easy-to-understand table.

If you can't find a comparison resource in your area, use a simple Excel sheet to track the various metrics.

Check for Reviews and Recommendations

Before making your decision, ask around to get recommendations and reviews. Customer service is so important when choosing an energy provider. Knowing that you're working with a company that cares about their customers can help you navigate issues that arise.

Talk to your friends and neighbors about their experience, and do a quick search online to find out more about the companies you're interested in.

Narrow Down Your Options

Once you have the various pieces of the puzzle put in place, it's time to narrow down your options. Eliminate the providers who got terrible reviews or don't offer a solution that fits your consumption. The easiest way to narrow down your options will be through the process of elimination.

As you move through your list, don't hesitate to reach out to providers to ask questions about their services. Some smart questions to ask include:

• How long does a contract last?
• Does a contract auto-renew?
• What are early contract cancellation fees like?
• What happens if you move but want to keep their services?
• What's the billing process like (frequency and delivery method(?
• What payment options are available (cash, credit card, direct debit?)
• Is there a security deposit required?
• How long does activation take?
• Are there seasonal and peak hour rates?
• Are there any rebates?

Finding the answers to these questions will help you identify hidden costs and benefits to help drive your decision.

Calculate the Costs

Once you've made a shortlist of suppliers, it's time to take out the calculator and evaluate the costs. Use your current consumption and do the math to determine what your utility bill might be with each supplier, including factors like the deposit and peak hours.

As many suppliers include rebates for meeting a consumption requirement, it's also worth calculating those as well. Some suppliers make up for their rebate with higher hidden fees, so be cautious when calculating.

Once you have all of the bits and pieces in place, make a decision that suits your needs.