Compare Electricity Prices in Philadelphia 2023
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Are you tired of paying the high electricity prices imposed by PECO Energy? Thanks to the Pennsylvania electricity choice law you are no longer forced to buy your electricity supply from PECO energy. Instead you can shop the market for the most competitive electric rates and lower your electric bill substantially.
Philadelphia has become one of the most active competitive electricity markets in the country. Consumers are taking action by comparing electricity prices in Philadelphia and finding the best energy offer for their needs. Comparing electricity prices in Philadelphia allows consumers to pay less for their electricity while still having the local utility company they have come to know and trust, PECO Energy, deliver their power and monthly invoice.
Switching electricity suppliers is a seamless process; there are no switch fees, the power does not turn off (the switch is unnoticeable), you don’t have to contact your current supplier (the new supplier does this for you), and the whole process is monitored carefully by the Pennsylvania Public Utility Commission. Don’t forget the best part, you will save big bucks on your electricity bill.
Saving Money on Philadelphia Electricity in 2023
PECO PTC vs ElectricRate Graph by ElectricRate
PECO Energy customers are finding savings as high as 30% by taking the time to compare Philadelphia electricity prices in 2023. Pennsylvania electricity choice gives Philadelphia residents the option to shop and compare for low electric rate options. However, if they do not shop and choose a plan from a competitive supplier, then they are automatically put on a default rate with their utility company.
In Philadelphia the utility default rate plan is with PECO Energy. While the lowest Philadelphia electricity rates are under 8¢ per kWh, the PECO default rate has hovered between 9.7¢ and 10.31¢ in 2023. Customers can easily reduce their PECO electric bills by 20-30% by simply taking the time to compare electricity prices in Philadelphia.
Understanding the PECO Energy Price to Compare in 2023
In April 2023 Pennsylvania released their quarterly electric shopping statistics report which revealed that only 21.4% of residential PECO customers were purchasing their power supply from a competitive electricity supplier. This indicates that there are close to 1.3 million electric bill customers in and around the Philadelphia area who are drastically over paying for their electricity each month.
One theory to the lack of electric shopping activity in the Philadelphia area is that the customer base simply doesn’t understand Pennsylvania electricity choice and the role PECO Energy now plays in their energy needs. PECO Energy serves as the power delivery company for Philadelphia and is not involved with offering competitive electric rates.
The money collected for their default Price to Compare rate is not retained by PECO Energy. Instead, they pass the revenue on to other alternative Pennsylvania electricity suppliers who bid for the right to provide power supply service to a portion of the default rate paying customer pool.
This means that even if you do not compare Philadelphia electricity rates and choose an alternative supplier, you are still purchasing your electricity from a supplier that is not PECO Energy. On the PECO electric bill it was just state that you are paying the Price to Compare for generation service and will not actually name the supplier, but that charge will be collected by PECO and transferred over to another company.
In contrast, if you find a low Philadelphia electric rate it will replace the high PECO price to compare and the difference will be pure savings each month.
Things to look for when comparing Philadelphia electric rates
What to Compare when shopping for electricity in Pennsylvania by ElectricRate
- Electricity Price
- Term of Contract
- Early Termination Fee
- Power Generation Source
- Customer Service Score
Philadelphia Electricity Prices
When the default rate is high, for many people the most important aspect of the rate is the price. The lowest price will yield the greatest amount of savings and the lowest PECO electric bills.
While Pennsylvania electricity supplier are forced to offer their rates in an apples-to-apples comparison against the default rate, they do have some room to maneuver their rate offerings that can lead to the customer being tricked. For example, they can slip in an extra monthly fee that will be on top of the electric rate.
Though a small monthly fee of $10 might seem small, it is actually enough to raise a rate by and entire 1¢ for an average size customer who consumes 1,000 kWh a month. So a fixed rate of 7.0¢ per kWh with a $10 monthly fee would actually turn out to be more expensive than a fixed rate plan of 7.5¢ with no monthly fee for an average size customer.
All electric plans in Philadelphia on the ElectricRate.com price search engine do not have any monthly fees associated with them. The prices just include the rates and they can be compared against each other apples-to-apples.
Term of Contract
When comparing electricity rates in Philadelphia it is important to make sure that it is a fixed rate and not a variable. If it is a fixed rate – which most offers are – then you will be able to compare the different term structures of the contract to see how long the rate will be locked in.
Some people do not like the idea of being locked into a Pennsylvania contract, but as it pertains to electricity prices in an environment of inflation and rising energy costs, having your electricity rate locked in will provide price security and peace of mind.
Some Philadelphia electricity customers are willing to pay a slightly higher price in return for locking in the contract for a longer period of time. Ultimately the decision to sacrifice a little on the price for long term price security will be up to you.
Early Termination Fee
Since you are locking in a fixed rate with a competitive Philadelphia electricity supplier, most plans will have some sort of early termination fee in place if you happen to break the contract early. The early termination fees should be compared against each other to make sure that the fees are not outrageous.
It should be noted that all Philadelphia electricity rate plans allow the customer to break the contract if they move. So you don’t have to worry about being hit with an early termination fee if you happen to move or sell your home during the electricity term contract.
Power Generation Source
With electricity choice in Philadelphia, customers can not only compare electricity rates offered by different suppliers, but they can also compare how the power they consume is generated. You have the ability to purchase renewal energy sourced from wind power from an environmentally friendly supplier.
Renewal energy tends to be a bit more expensive than electricity rate plans generated from fossil fuels. However, some customers are willing to pay a higher price for their power knowing that they are consuming electricity that has been generated from renewable sources.