ELECTRICITY FACTS

Did you know that New Jersey consumers have the right to choose from a wider range of electricity and natural gas options? Currently, that choice is being stifled and undermined, costing you in service, reliability, and innovation. In fact, too many New Jersey residents don’t even know they have this choice.

Choice in the electricity and natural gas markets offer consumers new, economically and environmentally valuable options that are typically unavailable through monopoly utilities. Choice sparks innovation and responsive new solutions to consumer needs, benefiting every consumer across the state.

For example, smart thermostats and smart home technology allow users to monitor usage, which can reduce costs and energy consumption. They also enable innovative solutions like Virtual Power Plants that can quickly reduce stress on the grid during times of high energy usage by temporarily reducing consumer demand.

Energy bills in New Jersey continue to increase, and officials are concerned about energy demands. New Jersey consumers deserve better.

Current Law

New Jersey’s Electric Discount and Energy Competition Act of 1999 (“EDECA”) was designed to allow electric and natural gas retail competition, giving consumers a choice to purchase energy from competitive suppliers. Before this law, local utility companies had full control over providing power and natural gas within their service territories.

Under EDECA, consumers were given the ability to choose to purchase energy from a competitive retail supplier or continue to receive their energy from the local utility.

Many consumers are unaware of the intent of the legislation. Despite statewide availability of retail supplier options, only a small percentage of New Jersey residents have made the switch. This is largely due to established utilities creating barriers that make it difficult for consumers to exercise their right to choose.

The Problem

In New Jersey, utilities dominate the energy market, controlling access and maintaining a monopoly on sales and billing. While EDECA aimed to introduce competition, utilities were allowed to compete with new suppliers, hindering the development of robust, consumer-focused options.

Utilities continue to control the relationship between consumers and their chosen suppliers, making it difficult for consumers to see the value of their suppliers. The switching process is often burdensome and managed by the utilities. Even after switching, consumers still receive a single bill from the utility, which includes charges from both the utility and the supplier, making it easy to forget the change.

Meanwhile, utilities remain firmly in the middle of the process, controlling everything from sales and billing to poles, wires, and customer service. This monopoly stifles competition and innovation, allowing utilities to maintain their dominance as “your energy company” even when they don’t provide the electricity or natural gas, undermining the intent of EDECA.

These issues with the current system are exactly why the Choose Who You Use coalition was created — to ensure New Jersey consumers have access to the full range of energy options they are entitled to.