Concerned about higher energy prices?

Ohio energy consumers should be aware that there can be both risks and opportunities when choosing electric and natural gas providers. The Office of the Ohio Consumers’ Counsel (OCC) is Ohio’s advocate for residential utility consumers and can help with making wise choices about utility services.

Ohio consumers do not have a choice regarding the monopoly utility that provides their energy distribution service—the wires or pipelines. But they can choose the supplier for the electricity or natural gas they use. That energy supply can be obtained from the utility that provides the distribution service, or it can come from an alternative supplier through the Energy Choice Program.

Energy Choice is available to customers of investor-owned utility companies. It is not available to consumers of municipal power systems, members of co-ops or participants in the low-income Percentage of Income Payment Plan (PIPP Plus).

Ohio consumers typically have three alternatives for their energy supply:

1) The Utility’s Standard Offer

Consumers have the option to stay with or return to the utility for their energy supply. Their utility can provide energy at a default market-based rate called the standard offer, specifically the “standard service offer” for electric and the “standard choice offer” for natural gas.

2) Energy Marketers

Consumers can also choose to purchase electric or natural gas from an energy marketer certified by the Public Utilities Commission of Ohio (PUCO). Charges to consumers would then come from the marketer for their energy usage. Consumers choosing a marketer continue to use the utility’s distribution service (wires or pipes). The billing would come the service utility.

Before contracting with a marketer, consumers should compare the marketer’s rates with their utility’s standard rate found on the PUCO’s Apples to Apples website at www.energychoice.ohio.gov. Consumers should also compare the rates and terms offered by various marketers, as well as government aggregation, if applicable.

Savings are not guaranteed! Consumers must do their homework to avoid overpaying.

3) Government Aggregation

In some parts of Ohio, government aggregation is another option for the supply of electricity or natural gas. Voters can authorize their local government to purchase electric or natural gas on behalf of their residents. Government aggregators use the buying power of many consumers to negotiate prices.

Most government aggregation in Ohio is “opt-out,” meaning residents are automatically enrolled unless they choose not to participate.

Consumers should compare the aggregation rates and terms with other available options, such as the standard offer, as well as offers from energy marketers.

Questions to ask when considering Energy Choice

  • Will I save money compared to my utility’s standard offer?
  • How much will I pay for energy?
  • Is the rate fixed, variable, or a “teaser”? 
  • What are the contract terms and conditions? 
  • Is there an early termination fee, and if so, how much?
  • How long is the contract term, and how will I be notified when it ends?
  • Will the contract automatically renew if I don’t act? If so, how is the new price determined?
  • Will the charges appear on my utility bill or a separate bill?
  • Who do I contact with billing questions?
  • When will the service begin?
  • What happens if I decide to move?

Our thanks to Kathryn Metz, Senior Outreach & Education Specialist at the Office of the Ohio Consumers’ Counsel.