Smarter Energy Shopping: How to Avoid Overpaying
In 2025, customers overpaid $24.5 million to third-party suppliers
As energy bills rise, some customers choose to “shop” for their energy, hoping to save money by comparing supply rates on the open market. But having clear, accurate information is key to ensuring that this choice actually lowers your bill instead of raising it. In fact, we found that, on average, DLC customers who shop for a supplier overspend by nearly $200 a year.
What’s driving higher electric bills?
First, it helps to know why your electric bill is increasing so much. It starts with demand for electricity growing faster than what’s being generated by power plants. That’s partly because new plants haven’t been built fast enough to replace older ones as they retire. At the same time, large data centers, which can use as much power as a small city, are pushing demand even higher.
As with any market, low supply and high demand raises prices.
DLC legally can’t build or own power plants or profit from the energy they produce. However, as a trusted energy partner, we have a responsibility to help customers make informed decisions about their bill — even the portions we don’t control.
What is energy shopping?
In Pennsylvania, electric distribution companies like DLC deliver electricity through poles and wires. But the energy itself comes from independent power producers that generate electricity and sell it on the open market.
You can shop suppliers or DLC is required to buy energy on your behalf.
Through this system, customers can choose to shop for their energy by selecting a third-party supplier. If not, the utility will purchase energy on their behalf by seeking the lowest price possible. This is known as the default service rate, or “price to compare” (PTC).
Your choice influences about half of your monthly bill, with all supply profits going directly to the supplier — not DLC.
Some Customers Are Overspending
In theory, market competition lowers prices. But nearly 80% of DLC customers with a third-party supplier are not saving money. On average, they’re overpaying $17 a month compared to the PTC. In 2025, this amounted to customers paying $24.5 million in unnecessary costs across our service territory.
In 2025, one customer who was enrolled with a third-party supplier received a single bill that was $200 higher than it would have been under DLC’s PTC.
Tips for Smarter Shopping
Introductory rates that spike later, gift card promotions and complex contract terms can all create confusion and, if not monitored closely, may result in a surprise bill later.
Over the past two years, DLC has received an average of 400 calls each month from customers canceling their third‑party supplier contracts. Some did not realize they had signed a contract until their supply rates soared.
Here’s how to shop smart:
- Find out if you have a third-party supplier: This information is located on the second page of your DLC bill in the Supply Charges section.
- Sign up for My Alerts: If you have a third‑party supplier, DLC’s My Alerts sends a notification when your rates exceed the PTC. This way, there are no surprises.
- Compare rates: Visit PAPowerSwitch.com to compare offers and learn your options.
- Know the terms before you sign: Ask whether rates are fixed or variable, what happens when an introductory period ends, and whether cancellation fees apply. Some customers can save money by staying engaged and switching before introductory rates expire.
Bottom Line
Significantly lowering energy costs will require building new power generation, critical infrastructure investment and smart policies at the state and federal level. DLC is actively working with Governor Shapiro, the Pennsylvania Public Utility Commission and legislative partners on potential solutions.
But for our customers who choose to shop for their supplier, having the right information now could provide relief sooner.
Learn more about how to exercise your choice in choosing energy suppliers.