Low Pennsylvania 2023 Commercial Electric Rates Offer Savings for Met-Ed Business Customers
Table of Contents
Introduction
Businesses in Pennsylvania who receive their electric bill from Met-Ed are being presented a very simple way to reduce their expenses in a time of high inflation and rising costs. Pennsylvania electricity choice is producing competitive commercial electric rates that are well below the Met-Ed default price to compare rate.
Businesses who have not taken advantage of the cheaper competitive electricity rates can easily reduce their monthly electric bills by 20% if they spend some time searching for a better electricity plan that would ultimately replace the default rate.
Met-Ed Commercial Price to Compare Rate
After several years of low default rates being charged to businesses in the Met-Ed service area that disincentivized owners and operators from taking the time to shop for competitive electricity, the combination of rising default rates and dropping competitive rates have changed the savings potential available drastically.
Business customers serviced by Met-Ed who are not purchasing their power from a competitive Pennsylvania electricity supplier pay a default rate for their electricity. This default rate, known as the price to compare, is determined through an auction process that Met-Ed holds on predetermined times for energy suppliers. These suppliers bid for the right to provide service to the pool of customers who do not select their own commercial electricity rate plan.
The default rates that are derived during these auctions are highly dependent on the wholesale electricity market at that time. If wholesale prices are high during the auction, then default paying customers can expect to pay high commercial electric rates for the next six months.
For most of 2021 and 2022 the wholesale electricity market prices were low during these auctions, allowing Met-Ed business customers to just sit back and not worry about shopping the market for a good commercial electricity rate plan. That environment has changed, with current default rates being much higher than what is available on the current competitive rate market.
The majority of Met-Ed commercial customers on the default price to compare are paying a rate of 10.68¢ per kWH. Meanwhile, competitive rates for small businesses can lock in a fixed rate below 9¢ per KWH and larger businesses can save even more.
Met-Ed Commercial Electricity Shopping Activity
As of July 2023, according to the Pennsylvania Office of Consumer Advocate, only 40.1% of Met-Ed commercial electricity customers were purchasing their power from an alternative electricity supplier. Roughly 27,300 businesses in the area are on some sort of competitive electricity rate plan.
This indicates that somewhere in the vicinity of 40,000 businesses who receive their electric bills from Met-Ed can reduce their energy expenses by 20% or more if they take the time to shop for a better rate plan. In a time of high inflation which is making almost every input price higher for businesses, being able to actually reduce a major cost on the P&L statement might be the difference between a business surviving or having to shut their doors.
While the commercial shopping activity is low in Met-Ed, it should be noted that 90% of large industrial customers are on a competitive rate structure. This indicates that larger businesses with employees whose main focus is cutting down on costs are taking advantage of electricity choice rates by comparing Met-Ed electric rates. Small businesses have the same opportunity to cut down on their costs, they just need someone to guide them through the process.
Pennsylvania Business Electricity Rate Search Engine
If you are one of the 40,000 business owners or decision makers for your enterprise who is not currently on a fixed commercial electricity rate contract, you can easily search for and find a plan that best fits your needs through the ElectricRate.com business rate search engine. By simply entering in your zip code and adjusting your monthly usage amounts, you will receive hundreds of offers from dozens of suppliers.
While all of these offers can sometimes be overwhelming for someone who doesn’t deal with electricity pricing on a day-to-day basis, the rate search engine provides valuable easy-to-read information such as the length of the contract, savings percentage versus the current default rate, and how much money you can expect to save during the term of the contract.
If you have questions about the offers or just need peace of mind that you are making the right decision, you can book a call with one of our expert electricity experts to make sure that you get a business electricity rate plan that is right for your specific business. While Pennsylvania has implemented laws to protect residential consumers, the business customer is susceptible to hidden fees and surprise charges if they are not careful. Booking a call with an ElectricRate.com energy expert will allow you to understand the contract you are signing so that there are no surprises. We are a licensed electricity brokering firm who represents our clients and not the suppliers.
Fixed Met-Ed Commercial Rates
Locking in a fixed rate will not only save you money on your energy expenses right away but likely protect you from any future price hikes that might occur on the Met-Ed default rate. While we won’t know for sure what the next default rate will be until it is announced, it is likely that it will stay somewhere in the vicinity of where it is now, or go higher if one of the numerous global tensions breaks out.
The energy markets are affected not only by inflation, but by world events as well. With so much going on in the world right now, and with current competitive rates offering high savings, it makes sense to lock in a fixed rate for as long as possible. You’ll save money in the short term and protect yourself against volatile prices in the future.
Conclusion
In conclusion, if your Pennsylvania business is not on a competitive fixed commercial electricity plan you are missing out on huge savings. In a time of rising costs and global uncertainty, the one thing you can be certain of is a low fixed commercial Met-Ed electricity rate if you shop through ElectricRate.com and our extensive business rate search engine.
Feel free to reach us by phone, email, or appointment to answer any questions that you might have.
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