Low Electric Rates in Newark
High electric bills have sparked competition among alternative electricity companies offering service in Newark, NJ. Savings versus the PSEG BGS rates – the default rate PSEG charges for electricity supply service to Newark customers who have not shopped for lower rates – are up to 17%.
It is not surprising that competitive electric rate offers are becoming lower. Switching activity for electric choice states, such as New Jersey, usually starts out slow as it takes time for the population to understand the changes that have occurred in their electricity market. As more time passes and the word of electric choice expands, customers start to shop for options. When electric rates become available that are lower than the default prices it becomes an easy decision for customers to make and switching activity increases.
Newark energy customers have been slow to compare electric rates and choose alternative service. One of the main reasons for this has been a lack of options. However, that is now changing as more electric companies have entered the New Jersey electric market with hopes of gaining market share. Particularly PSEG customers have seen the most electric choice options. Because PSEG is New Jersey’s largest utility company, in terms of customers, many competitive energy suppliers are testing the water with them before rolling out electric rate products in the other utility markets.
Newark electricity customers should view their utility area as a market. If you are a PSEG customer, you remain a PSEG customer even if you choose a low electric rate from a competitive supplier. PSEG continues to deliver the electricity to your house no matter who you decide to supply your electricity. They only offer default supply service (BGS Rates) for customers who have not chosen a competitive supplier.
Here are current low electric rates for Newark citizens in the PSEG territory (updated daily):