By Frank Caliva
When costs go up, consumers are expected to shop smarter for everything from groceries to cell phone plans. Energy costs, too, are rising for many Pennsylvania consumers, but there is something the Commonwealth’s families can do about it.
Pennsylvania’s retail energy market allows consumers to choose how they buy electricity and natural gas. This flexibility matters now more than ever as household budgets are under extreme financial pressure. Retail energy choice allows consumers to respond to price increases in ways a customer in a state with a monopoly utility model cannot. It gives Pennsylvanians options to manage costs rather than forcing everyone onto a one-size-fits-all product.
Competitive energy suppliers offer a range of products that meet the varying needs of Pennsylvania consumers.
In a time of price volatility, fixed-rate plans let customers lock in pricing and protect themselves from future increases for a specific period. Others provide renewable energy options or plans tailored to individual usage needs. These choices do not exist under a monopoly utility system, under which a single company generates, transmits, and delivers energy to customers. That kind of model leaves consumers with fewer tools to manage rising energy costs.
Budget certainty matters, and retail energy choice gives consumers a way to plan ahead rather than brace for the next increase.
Competition also benefits consumers because when more than one company competes for your business, they work harder to earn and retain you as a customer. That pressure encourages better customer service, drives innovation and helps keep prices from unnecessarily rising. Even consumers who never shop or switch suppliers benefit from that competitive environment, as it helps keep prices lower than in states without retail choice.
For example, research from the Retail Energy Supply Association shows that from 2008 to 2024, electricity rates for all customers increased by just 14.3% in states like Pennsylvania, which have competition, while over the same period, rates increased by 46.5% in states that are on a monopoly model.
Pennsylvania has one of the most robust retail energy markets in the country. Nearly 1.6 million consumers, approximately 29% of the state’s residential electricity customers, receive electricity or natural gas from competitive suppliers. Hundreds of licensed companies operate in the Commonwealth, giving consumers real choices instead of a single, take-it-or-leave-it price.
Strong oversight is a critical part of making this system work. The Pennsylvania Public Utility Commission enforces rules governing marketing, disclosures, billing practices and consumer rights. When companies fail to follow those rules, regulators have the authority to step in and take action. That is how consumer protection should function.
RESA has consistently supported efforts to strengthen oversight and consumer education, including legislation that would require enhanced training, certification and bonding for suppliers and their sales representatives. These measures help ensure that a small number of bad actors do not undermine a market that works for millions of Pennsylvanians.
Consumer education and transparency are also essential. The Public Utility Commission’s PAPowerSwitch.com and PAGasSwitch.com websites allow Pennsylvanians to compare licensed suppliers, prices and contract terms in one place. They give consumers the information they need to make choices that fit their budgets and energy needs.
For consumers, the issue is straightforward. Choice provides options, flexibility and protection at a time when costs are rising.
Pennsylvania consumers deserve the same freedom to choose an energy supplier as they expect with other essential services. Competition allows people some level of control during an uncertain economy. In this time of rising pricing concerns, keeping competitive markets safe, reliable, and affordable is vital for Pennsylvania families.
Frank Caliva is national spokesperson for the Retail Energy Supply Association (RESA).