Should I switch my electricity and gas Provider

[Narmer]

Along with my latest Con Edison bill gas and electricity bill, ConEd wants me to switch to another ESCO (energy service company). THey say that I will get 7% the first two months, a 1.5 cents per 20 KWHRS and lower taxes, and a 2.4 cents per thermometer as opposed to a charge of 87.5 cents per thermometer if I make the switch.

One thing I don't understand is that ConEd owns the infrastructure and they will continue to come to my apartment building to check the meter every month. Is this some kind of ruse hatched by politicians to make it seem like they are doing something about energy prices? Will my prices go up after two months? Has anyone ever done this before?

In other words, should I make the switch to the other companies or will they just be pointing fingers should there be a descrepency (sic?) or if something goes wrong?

 

[Narmer]

Primetime bump.

 

[SuperSix]

You have a choice?

Go with whatever "scheme" costs you less.

 

[kranky]

It's not a scheme. If you can save, then switch. Just make sure you know (1) how long of a commitment it is; (2) are there any penalties for switching back; and (3) if your rate is guaranteed or if it can change.

ConEd gets paid for delivering the electricity and/or gas to you. The supplier you choose gets paid for supplying the electricity or gas.

We've had a similar program in PA for a few years now.

 

[Doodoo]

This is because of the whole deregulation thing. All the politicians thought competition was gonna bring down prices, but it never happened. When the companies were generating power themselves, prices were much cheaper. Con Ed basically still owns the infrastructure, so they will continue to read your meter and service your lines. You will only pay them for the delivery charge of your power. I don't believe Con Ed generates, so they buy their power on the open market. If you buy from another supplier, you're banking on that supplier getting better rates than Con Ed. Some utilities make no money on the actual power, making money only on the delivery charge...not sure if this is the case with Con Ed though.