Compare New Jersey electricity rates

The U.S. launched the Energy Policy Act in 1992 to allow states to deregulate their energy markets for residents and businesses to choose their energy supplier. Before deregulation, the supply and delivery of energy were combined into one cost and only available from one supplier per area. 

In 1999, New Jersey moved to deregulate the state’s electricity and gas, thus separating the supply and delivery portions into two entities. As a result, residents can now choose their New Jersey electric company. If you’re careful to buy at the right time, you can save on your electricity rates.

Energy deregulation works to eliminate monopolies by creating a wider and more competitive energy market. The New Jersey Board of Public Utilities monitors rates and regulations to ensure utility services offer fair rates to New Jersey residents.

Before selecting New Jersey electricity suppliers using Choose Energy’s free marketplace, it’s important to fully understand your power to choose. Our mission is to help you figure out your best options by providing educational guides, clear information, and easy-to-use tools. Our must-read resources can help you confidently shop and select the right energy supplier.

• What is the difference between a fixed-rate, variable-rate, and prepaid plan? Due to seasonal differences, the average electric bill in New Jersey will most likely vary. Fixed-rate plans are the most traditional, offering stability and consistent monthly pricing. Variable-rate plans, meanwhile, can fluctuate month to month. Prepaid plans require payment up front each month, usually at higher rates.
• Are there different renewable energy plans? New Jersey offers a variety of renewable energy options. These “green energy” plans include 100% renewable energy, such as solar power, renewable energy credits, carbon offsets, and buyback programs.
• What happens if you don’t buy from a supplier? You are not required to purchase a deregulated plan from a third-party supplier. If you choose not to, your electricity and natural gas will be supplied by your local utility company at its default monthly rate.

Utility companies are responsible for successfully delivering electricity to your home or business by maintaining power lines, poles, meters, and energy infrastructure. You should contact your utility if you’re struck by a power outage in New Jersey. 

Atlantic City Electric, Jersey Central Power & Light, Public Service Electric & Gas, Rockland Electric, and Vineland Municipal are the five main electric utilities in New Jersey. The Garden State also has four gas utilities: Elizabethtown Gas, New Jersey Natural Gas, Public Service Electric & Gas, and South Jersey Gas.

Energy suppliers, meanwhile, are the companies that buy electricity and gas and sell it to consumers. Due to deregulation, multiple New Jersey electric suppliers and natural gas suppliers are available, including Constellation Energy and Direct Energy. All third-party New Jersey electric company suppliers are licensed and approved by the New Jersey Board of Public Utilities.

How long does it take to switch energy providers?

Finding and switching to a new plan and provider is quick and easy. You can complete the process online in just a few minutes, and your service will typically go into effect on the next billing cycle (usually within 30–60 days).

Is a deposit required for my energy plan?

Each provider has its own criteria for when it requires a deposit, usually based on your credit score. If you’d prefer not to pay a deposit, filter your search results for no-deposit plans.

How can I lower my electric bill?

There are many ways to lower your energy usage and bills, including switching to a new provider, investing in energy-efficient appliances, and opting for a renewable energy plan.