Energy Service Companies or ESCOs are mostly energy suppliers who are focused on buying and selling electricity in the market. The electricity will be then sold to customers at a price lower than the local utility costs. The prices they sell electricity are mostly called “competitive prices” as there prevails competition among ESCOs and the utility to provide the best rates for the customers.
What are the benefits of choosing an Energy Service Company?
While choosing an ESCO, consumers get some benefits. The most important is enjoying fixed and stable energy rates. The second benefit is that they get to choose plans cheaper than the other default utility prices, fetching them long-term savings. The last benefit is that consumers can select renewable energy plans, saving more than 7 metric tons of CO2 each year.
- Stable rates
The utility rates vary in some states of the United States. This is mainly because the utilities cannot make any profits from the sale of electricity. Therefore, they just move along with the market rates. However, this will trouble the consumers. However, ESCOs can improve buying opportunities by offering fixed rates to protect consumers from price flows.
- Low competitive rates
ESCOs also offer competitive low-priced energy rates to businesses and homes as a result of their ability to optimize the buying opportunities in the market. Along with buying energy at optimum times, ESCOs also can make use of their collective purchasing potential to find better deals than the current utility rates.
- Chances to find alternative energy plans
Some ESCOs provide opportunities for consumers to offer power to their homes using renewable energy. For this, ESCOs will be buying Renewable Energy Certificates which will match some percentage of your total usage. As utilities are not offering renewable energy certificates and the choice to opt for a renewable energy plan, ESCOs are attracting more consumers.
Tips to choose your Energy Service Company
Here are some tips for people who are confused about selecting an Energy Service Company.
- Find the amount of energy you use
Energy Service Companies will need to know your energy usage to find the best plans that suit you. You can check your billing history to find this.
- Get a list of the Energy Service Companies
There will be several Energy Service Companies in your area. Get a list of them to find the one that will be an ideal choice for your energy requirements. You can also check their websites to get more details.
- Compare the rates offered by the companies
Energy Service Companies will be offering competitive rates as they compete among themselves. Therefore, you have to find the rates offered by different companies to find the best deals.
- Consider environment-friendly plans
While choosing the company, find out if they offer green power. Some energy service companies sell energy from environment-friendly sources like hydropower plants, solar power, and wind. However, the cost of such energy will be higher than the ones from traditional sources.