Quick Answer
An electricity supplier (or retail energy provider) is a PUCO-licensed company that sells the generation portion of your electricity. Your utility still delivers the power. In Ohio, as of August 2026, default supply rates range from about 10.7 to 11.2 cents/kWh, while the lowest competitive supplier rates start near 7.6 cents/kWh.
Table of contents
Shopping for power in Ohio? See live rates from every supplier on our Ohio electricity rates page.
The bill that started the question
A homeowner in Akron opens her electric bill in August 2026, sees a line that reads "generation" and another that reads "distribution," and realizes she has no idea who is actually selling her the electricity. She pays Ohio Edison every month. But the generation charge, it turns out, she may not have to buy from Ohio Edison at all.
That confusion is common. Ohio deregulated its electricity market more than two decades ago, splitting the old monopoly into two separate functions. Understanding that split is the first step to figuring out whether you are paying more than you need to.
What is an electricity supplier, exactly?
An electricity supplier, also called a retail energy provider or competitive energy supplier, is a company licensed to sell the electricity generation portion of your bill directly to residential and business customers. It does not own the wires that run to your house. It does not send the repair crews during outages. It simply buys electricity on the wholesale market and resells it to you at an agreed retail price.
In Ohio, every electricity supplier must be certified by the Public Utilities Commission of Ohio (PUCO) before it can solicit customers. That certification process requires suppliers to meet financial and operational standards, which gives shoppers a baseline level of protection.
The utility, by contrast, handles two other jobs: delivering power over its network of lines and transformers, and serving as a backstop supplier for anyone who has not chosen a competitive provider. You pay the utility for delivery no matter which supplier you choose. Only the generation piece is up for grabs.
How does electricity deregulation work in Ohio?
Ohio passed the Electricity Restructuring Act in 1999, and it took effect in 2001. The law required utilities to functionally separate generation from transmission and distribution. The practical result is what Ohioans see on every bill today: a supply (generation) charge and a delivery charge, billed on the same statement but governed by different rules.
The six investor-owned utilities serving Ohio residential customers are AEP Ohio, Duke Energy Ohio, AES Ohio, Ohio Edison, Toledo Edison, and The Illuminating Company. Each utility sets a default supply rate called the Standard Service Offer, and the per-kilowatt-hour cost of that offer appears on your bill as the Price to Compare. That number is your benchmark. Any competitive supplier whose rate beats it is worth a closer look.
PUCO oversees the whole system, licensing suppliers, handling complaints, and maintaining the state's official shopping comparison tool, Energy Choice Ohio (energychoice.ohio.gov). The Apples to Apples chart on that site lists every active, certified supplier offering service in your utility's territory, making side-by-side comparison straightforward.
What does the Price to Compare on your bill mean?
The Price to Compare is the per-kilowatt-hour rate your utility charges for its Standard Service Offer, the default generation supply. It is printed on every Ohio residential electric bill because state law requires utilities to disclose it. If a competitive supplier quotes you a rate below that number, you would pay less for the generation portion of your bill by switching.
As of August 2026, the default supply rates across Ohio's major utilities are:
The Illuminating Company: ~11.2 cents/kWh
Toledo Edison: ~11.1 cents/kWh
Ohio Edison: ~10.9 cents/kWh
AES Ohio: ~10.9 cents/kWh
AEP Ohio: ~11.0 cents/kWh
Duke Energy Ohio: ~10.7 cents/kWh
The lowest competitive supplier rate available in the state right now is approximately 7.6 cents/kWh, though that figure varies by utility territory and contract terms. Current competitive rates for your specific address are available at ElectricRates.org's Ohio page.
Important: the Price to Compare covers only the supply portion of your bill. Delivery charges, taxes, and any fixed fees stay the same regardless of which supplier you choose. When you run the math on potential savings, apply the rate difference only to your generation kilowatt-hours, not your total bill.
What types of electric suppliers and rate structures exist?
Not every competitive supplier sells electricity the same way. Understanding the main contract types helps you avoid surprises.
Fixed-rate contracts lock your generation rate for a set term, typically six to twenty-four months. Your rate will not change if wholesale prices spike. The tradeoff is that you also will not benefit if prices fall during your contract period. Fixed rates are the most common choice for households that want predictability.
Variable-rate contracts float with market conditions, sometimes monthly. They can be lower than fixed rates when wholesale prices drop, but they can also rise sharply. Customers on variable plans should check their rate regularly.
Renewable or green energy plans allow you to match your usage with electricity from wind, solar, or other renewable sources, typically through renewable energy certificates. These plans sometimes carry a premium over standard supply rates, sometimes not. Availability varies by supplier and territory.
Budget billing or flat-rate plans from some suppliers set a fixed monthly dollar amount rather than a per-kWh rate. These can simplify budgeting but may include true-up clauses if your actual usage differs significantly from the estimate.
Always read the contract disclosure carefully. Reputable suppliers are required by PUCO to provide a written disclosure document before enrollment that spells out the rate, contract length, early termination fees (if any), and renewal terms.
How do you switch electric suppliers in Ohio?
Switching is designed to be low-friction. The physical delivery of your electricity does not change, no one comes to your house, and there is no interruption in service. The process runs entirely through paperwork and billing systems.
Step 1: Find your Price to Compare. It is on your current bill. This is the rate you are trying to beat.
Step 2: Shop the Apples to Apples chart. Go to Energy Choice Ohio or check ElectricRates.org for Ohio to see live competitive rates. Filter by your utility territory and compare fixed versus variable offers.
Step 3: Enroll with your chosen supplier. Most suppliers let you enroll online or by phone. You will need your utility account number and service address. The supplier notifies your utility and handles the switch on its end.
Step 4: Confirm the switch on your next bill. Your utility still sends the bill (in most cases) and still handles outages and emergencies. You will see a line showing your new supplier's generation rate instead of the Standard Service Offer.
If you ever want to return to your utility's default supply, you can cancel with your supplier. Check your contract for any early termination fee before doing so.
Are retail energy providers safe and legitimate?
In Ohio, yes, provided the supplier is certified by PUCO. Certification is not automatic: suppliers must demonstrate financial capability and agree to follow state consumer protection rules. PUCO maintains a public list of certified suppliers, and Energy Choice Ohio only displays certified providers.
That said, complaints do exist. Common issues include door-to-door sales reps who misrepresent savings, automatic contract renewals at higher variable rates, and unclear early termination fees. Ohio law gives you a short rescission period after enrollment to cancel without penalty, check your contract or contact PUCO for the current terms that apply to your agreement.
Protective habits: read the disclosure document before signing anything, keep a copy of your contract, and set a calendar reminder before your contract renewal date so you are not rolled onto a variable rate without knowing it. If something feels wrong, PUCO's consumer complaint line is the right first call.
Do low-income programs work with competitive suppliers?
Ohio's two main low-income electric assistance programs are the Home Energy Assistance Program (HEAP) and the Percentage of Income Payment Plan (PIPP). PIPP in particular sets a customer's monthly electric payment as a percentage of household income, with the difference credited against the bill.
Customers enrolled in PIPP typically must take service from their utility's Standard Service Offer to participate correctly. Switching to a competitive supplier while on PIPP can affect how the plan credit is calculated and may reduce or eliminate the benefit. Anyone currently on PIPP or considering it should contact their utility or the Ohio Development Services Agency directly before enrolling with a third-party supplier.
HEAP is a seasonal bill-credit program and generally does not restrict which supplier you use, but confirming with the program administrator is always the safer move. Do not rely on a supplier's sales representative for guidance on public assistance programs. Go to the authoritative source.
Is switching electricity suppliers worth it in Ohio?
The honest answer depends on the current gap between your utility's Price to Compare and the best available competitive rate, plus your usage level and how much rate volatility you are comfortable with.
As of August 2026, that gap can be meaningful. The state's lowest competitive rate is roughly 7.6 cents/kWh against default supply rates ranging from 10.7 to 11.2 cents/kWh. For a household using an average amount of electricity, that differential applied to the generation portion of the bill adds up over a twelve-month contract. Higher usage households see more dollar impact from the same per-kWh difference.
The calculation changes if you lock a fixed rate and default supply rates fall, or if you choose a variable plan and the market rises. Shopping at the right moment matters. Checking rates periodically at ElectricRates.org, rather than setting and forgetting for years, is the approach that consistently yields the best outcomes for Ohio shoppers.
Switching is free, the process is straightforward, and you retain all your utility services and protections. For most Ohio households paying above the lowest available rate, at least running the comparison is worth fifteen minutes.
Frequently Asked Questions
What is the difference between an electricity supplier and a utility?
How do I know which electricity supplier is available in my area?
Will switching suppliers affect my utility service or cause an outage?
What is the Price to Compare on an Ohio electric bill?
Can I switch electricity suppliers if I am on PIPP?
Who regulates electricity suppliers in Ohio?
Looking for more? Explore all our Ohio Energy guides for more helpful resources.
About the author

Consumer Advocate
Han helps consumers in deregulated states understand their electricity options. He breaks down confusing rate structures, explains how to read an EFL, and identifies which plans save money versus those that just look cheap upfront.
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Sources & References
- Public Utilities Commission of Ohio (Public Utilities Commission of Ohio): "Energy Choice Ohio (Apples to Apples comparison chart for certified competitive suppliers)"Accessed Aug 2026
- Public Utilities Commission of Ohio (Public Utilities Commission of Ohio): "PUCO consumer protection rules for competitive retail electric service, including disclosure requirements and rescission rights"Accessed Aug 2026
- Ohio Development Services Agency (Ohio Development Services Agency): "Home Energy Assistance Program (HEAP) and PIPP program information for Ohio low-income households"Accessed Aug 2026
Last updated: August 18, 2026
