Compare 2024 BGE Prices and Suppliers
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About BGE and Comparison Shopping
Maryland’s largest energy utility company, Baltimore Gas & Electric (BGE), delivers power and gas to more than 1.3 million customers throughout Baltimore and the surrounding suburbs. While these customers pay regulated fees and rates for the delivery of the energy through the regulated distribution channels, they have the opportunity to save money by looking to compare prices offered by competitive Maryland energy suppliers.
The energy prices that competitive suppliers offer can be compared directly to BGE price to compare rates, which are the default prices that customers who do not choose a competitive plan pay for electricity and natural gas. By comparing BGE prices and suppliers, customers can find rate plans that are below the default prices which will result in lower monthly BGE energy bills.
BGE Shopping Activity in 2024
Six and a half years ago in January 2017, data from the Maryland Public Service Commission reveals that only 24.4% of BGE residential electricity customers were purchasing their electricity from a competitive supplier, despite there being multiple offers yielding double digit savings versus the BGE price to compare rate. Today, at the start of 2024, that number has dropped to 16.3% of customers who are currently on a competitive plan.
The 83.7% default paying customers can easily reduce their electric bill by taking the time to compare the lowest BGE competitive suppliers. Recently competitive suppliers have been able to lower their price offerings which is expected to result in more comparison shoppers throughout the BGE service area.
Small businesses in Baltimore can also take advantage of competitive BGE electricity rate offers. However, only 30% of small businesses in the Baltimore region that is serviced by BGE are currently on a alternative electric rate plan. Out of the total 133,339 commercial and industrial BGE customers, only 36.4% are purchasing their power from a licensed competitive Maryland electricity supplier.
Rising 2024 BGE Supply Prices
The decreased energy shopping activity in Baltimore is largely due to the fact that the BGE price to compare default rate has been low the last few years. Unfortunately, that has recently changed as the price for electricity supply that BGE charges has gone up at the start of 2023, and the rate will continue to rise with the next increase happening on October 1, 2023. In a global inflationary environment energy expenses are expected to continue to rise over the next several years.
Residential customers in Baltimore on the default supply rate will see a 17.81% increase on their electric bills in October of 2023. The new higher rate of 11.85¢ will remain in effect through the end of May 2024, and could go higher from there.
Customers on the default rate who take the time to compare BGE prices can lock in a fixed rate that is close to where the default price of 9.983¢ is residing. Essentially, through Maryland electricity choice, BGE customers can avoid the 17.81% increase by selecting a competitive rate plan.
Role of Competitive BGE Suppliers
In addition to electricity choice, BGE gas customers can also compare competitive prices offered by suppliers. Most gas suppliers also offer electricity service, however not all electricity suppliers offer gas service. While the BGE gas price to compare changes on a monthly basis, the electricity price to compare is set for a year in advance. This makes marketing and selling electricity service to new customers easier for competitive suppliers operating in the BGE region; savings forecasts and projections can more easily be calculated allowing for easier management decisions to be made.
Competitive BGE suppliers buy electricity contracts on the wholesale market and sell it to their customers at the retail level. BGE default supply rates are determined by an auction process that occur at predetermined times. Since competitive BGE suppliers can pick and choose when they purchase their power contracts, they are better able to manage their risk and buying strategies to purchase at more efficient times. This is how they are often able to offer electricity prices to customers that are below the default supply price.
Conclusion
With more than 1,000,000 BGE electricity customers currently on the default rate, competitive suppliers are launching new marketing programs in hopes of acquiring new customers. BGE residential customers can compare prices from a variety of suppliers by using the energy rate comparison tools offered at ElectricRate.com. The comparison tools allow consumers to easily compare the prices, term length, early termination fees, amount of savings, and other incentives that the plans contain side by side.
BGE Frequently Asked Questions
Starting on October 1, 2023 the BGE default supply price for electricity will be 11.85¢ per kWh. This is significantly higher than competitive BGE electric rates. The rate will remain in effect until the end of May in 2024.
Use the electricrate.com energy search engine and price comparison tool:
Nothing happens or changes except the price you pay for electricity. You will still receive your electric bill from BGE. Instead of paying the higher BGE default rate, you will pay the eletricity rate offered by the competitive rate plan that you have agreed to.
If you can save money, there is no reason not to switch. The reliability of the power will not be effected and BGE will not treat you any different. This is guranteed by the Maryland Public Service Commission.
Todd Yasbin
Current COO and founder of ElectricRate.com
