You don't always have to take what you're given in life. Case in point: your utility company probably isn't the only service provider you can buy electricity from. With that said, it's not as easy as calling up a competitor and making the switch. Just because there's competition, doesn't mean it's a better deal. You need to know which questions to ask and what actually represents a good value.

 Why Shop At All?

Just because your current supplier provides you with reliable energy doesn't mean that you are getting the best possible price. Energy companies are only motivated to provide competitive pricing when there's a threat that you'll leave. Otherwise, they are incentivized to charge you the highest possible price they think you'll pay.

You may not like this, but the flip side is that you're incentivized to pay the lowest possible price - this is why shopping around is important. If enough people leave an energy supplier, that supplier will be forced to lower its prices or go out of business.

Electricity rates from many companies depend on government regulations in that area, whether they supply "green energy," and what the usage is among its customers. That's why it's important to get as many quotes as you can. In some cases, you'll be limited as to how many options you have. That's fine. Just get the quotes and compare.

Can I Do Budgeted Billing?

Ask your new energy supplier if you can do budgeted electric billing. Budgeted billing isn't a new concept and most companies offer it. If you're not familiar with budgeted billing, it's a pricing model that allows you to pay the same price every month - regardless of your actual energy usage. The idea is that you'll overpay in the off-peak season and underpay in the peak season. At the end of the year, you'll have paid the correct amount of money for the energy you've used.

 It's a better way to anticipate electric charges year-round compared to variable billing where your charges might fluctuate significantly - especially during the dead of winter or the peak of summer. What Will Change If I Switch?

 There are essentially three parts to your electric service. First, there's the power generation. Generation is the actual production of electricity. Next, there's the transmission. This is the movement of the electricity from a facility that produces it to a local distributor. Finally, there's the distribution. This is the actual deliver of power to your home.

When you switch electric suppliers, you're switching companies that produce the electricity for you, but you're not switching the transmission or local distribution.

 Will I Get Two Bills?

 Many utilities will just send you one consolidated bill. It makes it easier for everyone involved. However, some suppliers want to send you a separate bill. In these cases, you'll receive a bill from the supplier and another one from your local utility.

Who Should You Contact?

If you have billing questions, you'll refer those to your supplier. For outages, you'll have to contact your local distributor/utility company.

 Jason Persinger spent time as an electrician's apprentice before switching careers as a freelance writer and journalist. He enjoys long walks, shopping with his daughters, and spending quiet time at home with wife, Amanda.