Switching business electricity suppliers is a four-step process: pull your usage data, compare all-in quotes on that data, review the contract before signing, then enroll. The new supplier handles the changeover — your utility still delivers power and responds to outages. There is no service interruption.
The biggest mistakes businesses make are starting too late (inside 30 days before expiry, when leverage is gone) and comparing energy-only quotes that leave out capacity and transmission. This guide covers both.
Contract expiry is a hard deadline that most businesses treat as a reminder rather than a starting gun. That framing costs money. Suppliers who know your current contract is expiring in two weeks also know you cannot wait — and quotes reflect it.
Starting 60 to 90 days out gives you time to request quotes from multiple suppliers, push back on terms, and still execute a signed contract before the old one lapses. It also protects you from the holdover rate — the rate your supplier charges if the contract ends with no replacement in place. Holdover rates are set contractually and are typically higher than the negotiated rate you were paying.
Set a calendar reminder the day you sign any electricity contract: subtract 90 days from the expiry date and mark it "start shopping."
Suppliers price commercial contracts on your actual load profile, not a per-kWh guess. Gather 12 months of bills before you contact anyone. What you need: monthly kWh consumption, peak demand (kW) if your utility bills it, your rate class or schedule name, and your utility account number.
For larger accounts, request 15-minute interval data from your utility — most provide it through an online portal or by email. Interval data lets suppliers see your load shape precisely, which means a more accurate quote and less margin baked in for uncertainty. To access your data, some suppliers will ask you to sign a letter of authorization (LOA) — a document authorizing them to pull your account information from the utility on your behalf. Signing an LOA authorizes data access only; it is not a purchase commitment.
Request quotes from at least two or three suppliers and insist on all-in pricing for the same term length. An all-in rate bundles energy, capacity, transmission, and ancillary charges into a single per-kWh number. Energy-only quotes exclude capacity and transmission — line items that can be material — and will always look cheaper than they are.
Compare quotes on the same term. A 12-month fixed at one price and a 24-month fixed at another price are different products. Ask each supplier: "Is this rate all-in?" and "What does it exclude?" Get the answer in writing before the quote expires.
Fixed-rate contracts lock in the supply price for the term. Variable or indexed contracts float with market prices — useful if you have appetite for price risk, but they require active monitoring.
Four clauses determine what you actually agreed to:
For a full breakdown of commercial contract structure, see our guide to commercial electricity contracts .
Once you sign the contract, the supplier submits the enrollment to your utility electronically. No action is required on your end beyond the signed agreement. The utility processes the supplier change on its own schedule — typically one to two billing cycles.
There is no service interruption. The utility continues to own, operate, and maintain the physical delivery infrastructure — the wires, transformers, and meters — regardless of which supplier you choose. Power flows identically on the first day of the new contract. If there is an outage, you still call the utility, not the supplier.
Many states mandate a rescission window after enrollment — typically three to ten business days — during which you can cancel without penalty. Confirm your state's window with the supplier before signing, and note the rescission deadline on your calendar.
An LOA (letter of authorization) is a form your business signs to let a supplier or broker request your account and usage history directly from the utility. Utilities will not release interval data or detailed billing history to third parties without it.
Signing an LOA is not a purchase decision. It permits information access. Suppliers need your data to build an accurate quote — without it they are guessing at your load profile, and the quote will be padded accordingly.
Read the LOA carefully before signing. Some LOAs are narrow and cover only data access. Others are broader and may also authorize the supplier to submit an enrollment on your behalf upon verbal agreement. If in doubt, ask the supplier to send a data-access-only LOA and handle enrollment separately.
Competitive supplier switching exists only in states that have deregulated their electricity markets — Texas, Ohio, Pennsylvania, Massachusetts, New Jersey, and Washington DC are the markets we cover. In regulated states, the utility controls both delivery and supply; no competitive suppliers operate there.
Even in deregulated markets, delivery remains regulated. Your utility sets the delivery rates in a tariff approved by the state public utility commission. Those charges — distribution, transmission, and any demand charges — do not change when you switch suppliers. Only the supply (energy) portion of the bill is competitive. For an explanation of how deregulation works and which states participate, see our guide to deregulated electricity markets .
No. Switching suppliers causes zero service interruption. The regulated utility — AEP, PECO, Eversource, PSE&G, Pepco, and so on — owns and operates the wires, transformers, and meters. That relationship does not change when you choose a new competitive supplier. Power flows the same way on day one of the new contract as it did on the last day of the old one.
A letter of authorization (LOA) is a document your business signs to authorize a competitive supplier or broker to request your account and usage data from the utility on your behalf. Suppliers need this data to price a contract accurately. Signing an LOA is not the same as agreeing to buy — it permits information access only. Read it carefully: some LOAs also authorize the supplier to submit an enrollment if you proceed.
Start shopping 60 to 90 days before your contract end date. That lead time gives you room to collect quotes from multiple suppliers, negotiate terms, and execute a new contract before the old one expires. If you wait until the final weeks, suppliers know your options are limited — and some contracts automatically roll into a holdover or default rate that is higher than what you were paying.
An all-in quote bundles every component of the supply charge into one per-kWh rate: energy, capacity, transmission, ancillary services, and any supplier margin. Energy-only quotes show only the commodity cost and leave out capacity and transmission, which can be significant. Comparing an all-in quote against an energy-only quote is comparing different things — the energy-only number will always look cheaper because it is incomplete. Always request all-in pricing and confirm in writing what the quoted rate includes.
Many states require a rescission window — typically three to ten business days after enrollment — during which you can cancel without penalty. After that window closes, early termination fees set out in the contract apply. Fee structures vary: some charge a flat amount, others calculate the remaining contract value at current market prices. Check the contract's early termination clause before signing, and confirm your state's rescission rules with the supplier.
Send us 12 months of bills. Our commercial team pulls all-in quotes from multiple suppliers on your real load profile — free, no commitment, typically within 48 hours.
Get free supplier quotesTerm length, ETFs, auto-renewal traps, and the clauses that matter most.
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