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How Do I Lower My Energy Rate In Pennsylvania?

October 19, 2020

How Do I Lower My Energy Rate?

There are two ways to lower your energy rate. The first option you can follow the link at PAPowerToSwitch and choose between 138 energy providers pre-approved by Pennsylvania Utility Commission. There are plenty of energy discount options available as the utility commission is a great resource for Pennsylvania electricity deregulation. If the first option becomes overwhelming or doesn't prove to be effective, the second option is to work with an energy procurement company like an energy consulting firm, or an energy brokering firm. Regardless of the title, energy consultants and energy brokers fulfill a similar role by helping you shop for discounted energy rates. Their value-add is to save you time by cornering the market out and identifying discounts in Penn Power utility. (READ MORE on Pros vs Cons

Shopping on your own/online:


  • Plenty of options at your finger-tips. Depending on your risk tolerance, you might shop with 1 supplier you've heard of, or you might shop with 100+. You're in the driver's seat the entire time and have full control over your budget, saving a little extra money without paying a broker/agent adder.


  • Making the right decision on your energy discount can be really simple for some, but for others requires a lot of time (ie: large portfolio accounts). If you're a multi-unit business owner and have a management team, assigning energy procurement to your Controller, CFO, Procurement Manager, and/or Accountant has the potential to consume a lot of their time. For organizations with multiple electricity accounts, ensuring all of your accounts are organized and synchronized with proper clauses in place takes time.
  • Shopping online may not always provide you the best rate. Rates that are displayed online daily are normally published rates derived from energy suppliers and their daily matrix pricing. These rates do have a buffer built in to mitigate the supplier risk in the event they procure energy for a commercial account that has a poor energy load (ie: poor load factor). For more information on matrix rates and the assumed risk premiums padded into those rates, feel free to contact one of us at Ananta, and we can elaborate.

Shopping through an energy broker:


  • In the event you find a trustworthy energy broker, or energy consultant, you're energy budgets are normally safe and considered to be in good hands. Typically, an energy broker will corner the market out with more than one energy provider and shop around trying to find you the lowest energy rate. By leveraging more than one supplier, energy brokering companies can typically find discounts on your electricity bill.
  • Peace of mind on your energy budget as a thorough energy broker provides you appropriate updates on renewal times, market dips, and other energy news.
  • Save a lot of time and energy
  • Typically, zero fees upfront


  • You will normally pay a fee that can range from 1% - 15% of your total electricity rate (your price to compare). This fee is set and controlled by each energy brokering company, and not every company will disclose this margin. Hence, every time you pay your electric bill, the energy supplier that won your electricity contract will be paying your broker their adder directly. Contrary to having any fees upfront, there is a broker fee (adder), that's built into the electricity rate you sign up with. (READ MORE for an example of margin breakdown) For example, Broker A and Broker B both might get the same transfer rate of $0.05/kWh. Broker A might charge a fee of $0.001/kWh, and Broker B might charge a fee of $0.005/kWh, hence, depending on which broker you're signing up with that day, you might either sign up at a rate of $0.051/kWh or $0.055/kWh. For more information on margins in the electricity industry, feel free to take a quick read on our blog titled, “Energy Margins Disclosed.”
  • You might run into an unethical energy broker and can be taken advantage of, which will end up costing you money.