New Low Electric Rate offer for PPL Homes
While PPL has been one of the most robust electric choice markets in the country since customers had their capped rates lifted in early 2010, electric shopping on the residential sector has recently slowed down due to lower than expected PPL price to compare default rates.
PPL price to compare default rates are determined by auctions that PPL holds for wholesale electricity suppliers. These companies bid for the right to service a percentage of PPL customers who have not switched to a competitive supplier. The winning bidders have to take into account that customers are free to shop the competitive market and leave the default service at anytime. So while an electricity supplier might win the right to serve 1,000 customers for 5 months, there is a chance that every single customer could leave before the term is up, which would leave the supplier at a huge loss.
In theory this is supposed to allow electricity shoppers to find better deals. Default service requires the default provider to charge a premium to all customers knowing that some will leave. By shopping for electricity on your own, the supplier can give you a more precise rate that is closer to the true wholesale price. This would be true if wholesale electricity prices remained flat from the time the auction was held until the default rate was set to change. However, in reality, the wholesale electricity market is constantly changing moving up and down.
These price discrepancies have recently caused the PPL price to compare rates to be lower than the majority of competitive offers in the market, which has in turn slowed down electric shopping in the area. Seeing that customers were unwilling to sign electric rate contracts for prices higher than current default rates, some suppliers have recently lowered their rates to attract buyers. Pennsylvania Power & Light is truly experiencing a competitive electricity market. Market forces are pushing electricity prices down in favor of the consumers.
Here are some current offers for PPL Customers: