Ohio electricity rates combine energy supply and transmission/distribution prices. The Public Utility Commission sets rates and considers various market forces.
Consumers can choose their energy supplier, plan, and rate in a deregulated energy market like Ohio. This includes options like switching to a renewable energy provider and participating in a government aggregation program.
Seasonal Changes
As the seasons change, energy demand varies. High demand can cause wholesale prices to increase, and Ohio electricity rates can reflect those changes. When wholesale prices rise, it’s more expensive for retail suppliers to buy the power they need to serve their customers. This can directly result from weather patterns, increasing population, or insufficient transmission/distribution capacity. You might find better deals by searching for Ohio electricity prices during periods of lower demand.
Many Ohio consumers choose to shop around for their energy supply, and you must ask your supplier about all of the fees that could appear on your bill. Then, you can select a plan with all the features that work for your household and budget. You can also look for programs that offer fixed-rate options, which allow you to lock in your rate for some time.
In addition, check if your community is part of a government aggregation program. These programs allow communities to join together and purchase energy as a group, which may reduce your rates. Search the map here to see if your community has an electric or natural gas government aggregation, and contact them to learn more about rates and terms. Sometimes, you can even get help paying your bills with these programs.
Inflation
Energy prices can fluctuate based on inflation, the cost of natural gas, and other factors. When prices go up, Ohio electricity customers pay more per kilowatt hour. This is why Ohio consumers need to shop their power rates and plan ahead of significant changes in energy costs.
Many Ohio homeowners can find cheaper plans with energy providers outside their utility provider. An online search tool will allow you to compare Ohio electricity rates side-by-side. Then, you can decide which option is best for your home.
In addition to shopping your rate, there are other ways to keep your energy costs low. For example, if you use the same appliances throughout the month, consider an electric company that offers a time-of-use plan. These plans typically charge less per kilowatt hour during off-peak times, such as the early morning.
You can also opt to join a community energy aggregation program. These groups leverage the buying power of residents and businesses to negotiate competitively priced energy supply options for their communities. Lastly, you can always try a fixed-rate plan, which helps prevent large swings in your energy costs. If you opt for a fixed-rate plan, your rates will be locked in for six to twelve months. These rates aren’t tied to market prices, so you can still benefit from lower energy costs if market rates fall.
Demand
Increasing demand for energy leads to higher wholesale prices, forcing retail electricity suppliers to pass those costs on to their customers. Things like hot weather or insufficient transmission/distribution capacity can cause this.
The best way to save on Ohio electricity rates is to shop for the lowest rate available. Many energy companies offer different plan types with varying rates and terms. For instance, fixed-rate plans provide stability by locking a price per kilowatt-hour for six to three years. Other programs, such as prepaid energy, allow you to prepay for electricity usage.
All Ohio electricity customers have the right to choose their supplier and plan. You can find your current supplier by looking at the bottom of your utility bill, which should include a disclosure called the Standard Service Offer or Price to Compare. This number is based on the default supplier chosen by your local electric company and regulated by the Public Utilities Commission of Ohio.
After discovering your supplier and plan, check for hidden fees or charges on your contract. This includes early termination fees, environmental costs, and other demands on your energy supply rate. It would help if you also tried to reduce your electricity usage, which will help keep your bills down over the long term.
Energy Efficiency
They consider the cost of generating electricity, transmission and delivery, and the costs of ensuring that electricity companies are making a reasonable profit.
In addition to the approved default rate, consumers can shop for a different retail supplier offering lower rates than their utility company. This option has been available since 2001 and is known as energy choice.
Those who choose to shop can sign up for a fixed-rate plan, which means their per-kilowatt-hour rate will remain the same throughout their contract, typically six to 12 months. Or, they can opt for a variable-rate plan that will allow their rates to fluctuate depending on market conditions.
Other factors to consider include when you consume your energy, as some electric utility companies use time-of-use plans where the per-kilowatt-hour rate is significantly lower during off-peak times, like early morning. And if you live in a community that has chosen to participate in government aggregation, which allows customers to leverage the buying power of their entire community, be sure to check out those options as well.
Ohio has announced a significant increase in electricity rates in the state due to various reasons, including soaring natural gas prices, the war in Ukraine, and global market factors. However, the average residential consumer will only see a small percentage of this increase, as they’re paying the default rate set by their utility provider.
