Switching Energy Suppliers: How It Works and What to Expect
If you've wondered about the difference between your utility and an energy supplier — or what happens when you change your energy supplier — we can help.
Your energy supplier sells you the electricity or natural gas and provides the rate or plan that you choose. Your utility sends the energy to your home, maintains local lines and pipes, reads your meter, and responds to outages. So, even when you switch suppliers, your utility — and the reliability of your service — remains the same.
In deregulated energy markets, you can choose the retail electricity or natural gas supplier that best meets your needs.
What to consider when choosing your energy supplier
Many people choose a supplier because of access to innovative energy products, like renewable energy, or access to specific rates or plan offerings.
Your energy agreement can affect the supply portion of your bill for months or years, and your supplier should make it easy to understand what you're choosing before you enroll.
Look for:
- Clear pricing: Know whether you're choosing a variable or a fixed-rate energy plan as well as the plan's term length.
- Plain-language terms: Review the plan length, renewal process, and any cancellation or early termination fee.
- Honest expectations: Understand that while a fixed supply rate can provide price certainty, it doesn’t guarantee savings on the total bill.
- Accessible customer service and support: Confirm how to contact your supplier with enrollment, account, or plan questions.
- Track record: Look for a company with experience, scale, and a proven commitment to customers and communities.
Understanding your energy bill: What changes after choosing a supplier
In many service areas, you'll continue to receive one monthly bill from your utility. The bill may now show your chosen supplier’s name and supply rate in the supply portion. The utility delivery charges remain, as the utility still moves the energy to your home and maintains the system. Billing arrangements vary by utility and location, so review your enrollment materials for details.
A typical bill can include:
- Supply charges: the amount of energy used, multiplied by the supply rate, plus any applicable supplier charges.
- Delivery or distribution charges: what the utility charges to deliver energy and maintain local infrastructure.
- Other charges: taxes, riders, or fees that may apply in your area.
Customers enrolled with a supplier can see their supplier’s name, as well as enrollment date, on the bill.
Some of customers' most frequent questions include:
- Does choosing a supplier interrupt my service? No. Your utility continues delivering energy to your home, and switching suppliers doesn’t require new lines, pipes, or meters.
- Who do I call during an outage or emergency? Even if you select a new supplier, you’ll still call your local utility, who is responsible for delivery equipment, outages, and emergencies. And any communication related to outages will still come from your utility.
- Will I receive two bills? Many customers continue to receive one utility bill that includes both utility delivery charges and supplier supply charges. Billing can vary by market, so check your plan and utility information.
- Does a fixed rate mean my total bill stays the same? No. A fixed rate applies to the supply rate for the term stated in your agreement. Your total bill can still rise or fall with usage, utility charges, taxes, and other fees.
I just enrolled with IGS Energy: What will my bill look like?
When your enrollment takes effect, look for IGS Energy in the "supply" section of your utility bill. This section should show the supply rate associated with your IGS Energy plan. The timing of the first bill that names IGS Energy depends on your utility’s billing cycle and the enrollment effective date.
You'll still see the utility delivery charges, and you'll continue paying your local utility just as you did before. The timing of the first bill that names IGS Energy can depend on your utility’s billing cycle and the enrollment effective date.
Before comparing bills, be sure to check three things: the billing period, your energy use, and the supply rate. A higher or lower total is not caused by the supply rate alone; weather, energy usage, utility charges, and taxes all affect your bill.