The Electric Discount and Energy Competition Act (EDECA) allows residential energy customers in New Jersey to shop for electric and natural gas supplies. 

Your energy invoice separates the supply portion from the delivery portion of your bill. Your electric service includes three primary components: generation (production of electricity), transmission (movement of electricity from the source to a point of distribution), and distribution (the delivery of the power to your home).

When you shop for an electricity supplier, you are selecting a company that is responsible for the electricity generation portion of your bill. With the supply portion of your bill open to competition, you have the option to compare prices from “third-party suppliers” against what your utility charges you for kilowatt-hours or therms. You can select a supplier based upon your own criteria. Whether you wish to choose the least expensive supplier or the supplier who uses the most renewable energy is up to you.

Regardless of your selection of supplier, your local electric or natural gas distribution companies still deliver the supplies through wires or pipes – and respond to emergencies.  Your service will be the same. The only thing that is different is that the energy supply is now purchased through a different company. Purchasing your energy supplies from a company other than your electric or gas utility is purely an economic decision; it has no impact on the reliability or safety of your service.

Where it may become confusing is that the invoice for your power may still come from your current utility, and the distribution will still be handled by your utility. The part that you are ‘switching’ has to do with energy generation that is brought to your utility.

New Jersey residents can shop for the lowest price with third-party suppliers. Local electric or natural gas distribution companies still deliver the supplies through wires or pipes – and respond to emergencies – but the supplies themselves are purchased from other companies. Purchasing your energy supplies from a company other than your electric or gas utility is purely an economic decision; it has no impact on the reliability or safety of your service…Who should shop?

New Jersey’s Clean Energy Program™ Rebates & Incentives

NJBPU and New Jersey's Clean Energy Program (NJCEP) promote energy efficiency and the use of clean, renewable sources of energy. The results for New Jersey are a stronger economy, less pollution, lower costs, and reduced demand for electricity. NJCEP offers financial incentives, programs, and services for residential, commercial, and municipal customers.

In 2022, President Biden signed the Inflation Reduction Act (IRA), the most significant legislation in U.S. history to tackle the climate crisis. The IRA features over two dozen provisions in rebates, loans, and tax incentives that help save New Jersey families money while moving our state closer toward a clean energy future. Find more information from here: Clean Energy for All - The White House.

 

To maximize the savings afforded by the IRA, you can stack federal programs with state programs, like New Jersey’s Charge-Up Program. The list of state programs for homeowners and businesses is available at www.njcleanenergy.com, where you can also find a directory to your electric and gas utility website to explore more cost-saving opportunities.

 

Visit www.cleanenergy.gov to learn more about the new federal incentive programs. We encourage you to take advantage of state and federal cost savings while they’re available.