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Energy Regulation in Virginia

Fact Sheets: Choosing an Energy Supplier

You may have the opportunity to choose your energy supplier. These suppliers are called competitive service providers (CSP) and must be licensed by the SCC. Competitive service providers are companies that generate, produce or contract for electricity or natural gas for delivery to a local utility. The price for the supply of the energy provided by the competitive service providers is not regulated.

Same Reliable Service – Same Delivery

Whether or not you decide to choose a new competitive service provider, distribution service -- the actual delivery of electricity and natural gas to your home or business -- will still be provided by your local utility. The utility will remain as your local distribution company (LDC), and a charge for delivery service will still appear on your bill. Delivery will still be regulated to ensure safe and reliable service. You will continue to notify your local distribution company about safety issues or service interruptions.

Price to Compare

Price to compare information may appear on your monthly bill. It is a benchmark to help you compare what you currently pay for electricity or natural gas supply service with any competitive offers that you receive.

Steps to Choosing an Energy Supplier

  1. Before you choose a competitive service provider, decide what is important to you. Many people look for the lowest price first. But others may be looking for extra services, flexible payment terms, a known brand name, or an energy source.
  2. Contact the competitive suppliers to ask questions and compare offers.
  3. Make sure you know all the details before you agree to change energy providers. Carefully read and understand all terms and conditions of the contract.
  4. Contact the competitive service provider directly to find out how to sign up. You do not need to call your local utility; your new competitive service provider will do that for you. Remember that it is illegal for you to be switched to a new competitive service provider without your permission.
  5. You have 10 days to change your mind without penalty. After that period, there may be a penalty fee if you cancel your contract before it ends.

Questions to Ask a Supplier

  • Do you have a license from the SCC?
  • What is the offer price (per kilowatt-hour or per Ccf/therm)?
  • Is the price fixed or does it change? If so, how?
  • What other fees do you charge? How about if I cancel?
  • What is the term of the contract? What about renewal?
  • How am I going to be billed?
  • Is there an incentive or special offer for signing up?
  • Is a budget plan available?
  • What sources are used to produce the energy?
  • What other services do you offer?
  • When can I expect service to begin?

What is Aggregation?

An aggregator is a person or organization that forms buying groups, which are formed within a community, non-profit organization, or business association. Through aggregation, you may be able to get lower prices through volume discounts for the group and its members. Like competitive service providers in Virginia, all aggregators must be licensed by the SCC.