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Electricity and Natural Gas Service in New Jersey

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New Jersey began to introduce competition to residential energy markets with the passing of Electric Discount and Energy Competition Act in 1999, which has allowed electricity and natural gas customers throughout the state the possibility to purchase their energy from a Third Party Supplier. Looking for energy supply options in New Jersey? You've come to the right place!

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What Deregulation Means for You

Deregulation of New Jersey electricity and natural gas markets means that you can choose who provides your energy supply. This means:

  • Greater choice of energy supplier
  • Wider price options - choose a floating price, or lock in a fixed price
  • Competition among suppliers, leading to lower prices and better customer service

Did you know? All customers in New Jersey may be able to find cheaper rates when they shop for their electricity and gas, but larger customers (those whose peak load is 750 kW or more) are subject to a half-cent retail margin if they continue to purchase electricity from their utility

Learn more about energy market deregulation in the US

What has not changed with deregulation is the operation of energy infrastructure. Your local utility still owns, operates, and maintains distribution network for electricity and/or gas, and the energy you receive will be the same, regardless of who supplies it. The same thing goes for interruptions or the quality of the electricity and/or gas you receive - in short, nothing changes but the price when you switch suppliers!

Choosing a Competitive Retail Energy Marketer in New Jersey

More choice and more options can make shopping for energy overwhelming at first. Here are some tips to help you get started:

Prices

Deregulation has brought you choice not only in who supplies your electricity, but also what kind of price you pay for it. If you purchase electricity from your utility, you are paying a variable rate known as the "Price to Compare". This rate changes every month, and is based on the utility's costs of procuring supply. This rate for natural gas is called the "Standard Choice Offer"

However, if you choose to purchase your electricity from a competitive energy retail, you have the option of locking in a fixed price. In general, we recommend choosing a fixed price for your electricity if you have the option - find out why.

Competitive Retail Energy Marketers in New Jersey

Whether you're shopping for electricity or gas, it's a good idea to check out the offers of at least four or five energy marketers before narrowing down. We also recommend checking out what current customers are saying about energy marketers in your area.

Contract Terms and Conditions

Here are a few things to look out for when you're reading the terms of your electricity or natural gas contract:

Early Cancellation Fees?

Also known as "early exit fees" or "termination fees", this is a charge for leaving your (usually fixed price) contract before the end of its term.

Automatic Service Renewal

You should always check what your chosen retail energy provider's policy is for when your contract comes to an end. Some providers will automatically switch you back to the utility, while others will automatically renew you.

One-Time Charges

It's a good idea to check out how much of a late payment fee your chosen provider charges, though you should always contact them to see if you can make a special payment arrangement if you cannot pay your bill on time.

Dispute Resolution/Communication

It's a good idea to be aware of the various ways that you can get in touch with your energy provider, as a general rule.

Find Out More Check out some of our guides to purchasing energy in the US:
Common energy contract terms and conditions
10 questions to ask your supplier

Additional rewards

While rewards such as free thermostats or air miles should never be your first reason for choosing an energy supplier, they don't hurt either! Competitive energy marketers sometimes join up with other companies in order to offer you additional benefits and rewards, which is something that your utility can't do.

Understand Your Energy Bills in New Jersey

Both your electricity and natural gas bills can be broken down into three main types of charges:

  • Charges related to your energy supply: covers the cost of the electricity you have consumed over the previous month.
  • Charges to cover the costs of transportation: for electricity, this covers the costs of transmission and distribution along high- and low-voltage wires; for natural gas, this refers to the costs of pipeline transportation and storage
  • Taxes and state surcharges: these may be flat sums, or variable (based on how much ils you have consumed in a month)

How Your Energy Service Works in New Jersey

Electricity and gas services in New Jersey work in similar ways, and the process of delivering energy to your home can be broken down into four main steps:

1. Generation/Exploitation

step-one

The first step of the process of bringing energy in your home is to generate it (in the case of electricity) or to get it out of the ground (for natural gas).

Most electricity in New Jersey is generated from nuclear and natural gas. New Jersey has adopted a renewable portfolio standard requiring Renewable resources make up about 2% of New Jersey's electricity mix.

Natural gas is sourced from the state of New Jersey and surrounding states.

2. Transmission

step-two

Transmission is the next step in bringing energy to your home. For electricity, this means sending power from the generating plants along high-voltage transmission lines to local distribution networks. For natural gas this step refers to its transportation in pipelines (often overground, at high pressures) to the local distribution network.

3. Distribution

step-three

The third step in the process is local distribution from the local distribution network to your home. For electricity, at this stage power is transformed into a lower voltage at the distribution network and travels along local wires to your home. For gas, this is the stage where gas travels in underground pipelines in your community until it reaches your home.

4. Consumption

step-four

The final stage of this process is when energy reaches your home. You are billed for your energy supply by either your utility or your chosen retail provider.

Got a question about your power supply in New Jersey? Give us a call at 1 (832) 460-0233 to find out your best options