When making a decision to switch electricity suppliers, it's vital to compare prices from company to company. But what are the main differences when going through a New Jersey Price to Compare, and what should New Jersey residents expect to see? New Jersey electricity rates can be complicated to work out, so we're going to explain some of the things you need to watch out for.

What Is Price to Compare?

The Price to Compare is something all consumers need to take into account when searching for the perfect electricity company to meet their needs. Price to Compare describes the amount you, as a consumer, will pay to your electric utility company. As you will be aware, several names crop up on a regular basis when discussing New Jersey electrical rates. These suppliers include ACE, RECO, JCP&L, and PSE&G.

How do I work out my New Jersey Price to Compare?

You can work out your Price to Compare in New Jersey by looking at your current electric utility bill. In it, you will find the average cost of generating electricity in units of kilowatt-hour - or kWh. It's this cost that you need to use in price comparison services or engines, and it should reveal which supplier is the most cost-efficient for your needs.

How is Price to Compare worked out?

Of course, things are never as simple as they seem. The Price to Compare is made up of several different figures that contribute to your utility bill for electricity. It includes the cost of your energy used, the cost of storing it and moving it, as well as your state's sales taxes. It's important to understand that different companies may have different prices for each of these areas, which will affect your overall bill.

Do the prices change?

You will notice that New Jersey electricity rates change twice a year, once in June, and once in October, on the first of the month. These price changes will reflect the impact of several different factors, including changes in global energy pricing, capacity and storage costs, and the expense of ancillary services. Changes to the Federal Energy Regulatory Commission will also have an impact.

Are there any other price changes?

In general, your electricity and gas bills will only change twice a year - in June and October as highlighted above. However, in certain situations, it may also change after December 1st and February 1st, if the supplier's costs have increased by a significant amount. You should be notified by your provider of the nature of these price changes, as well as the reasoning behind them.

How do I find the cheapest Price to Compare?

In general terms, consumers will be able to save money if they find a supplier that offers a cheaper Price to Compare for both electricity and gas. However, users should also be aware that future price changes may cancel out these savings, and be wary of entering long contracts that last longer than one year at most.