If you recently signed an energy contract with a retail energy provider, then you might be wondering when the new rate will take effect on your utility bill. Switching energy providers is a complex process that takes place behind the scenes at your local utility company and is predicated on the utility’s enrollment deadlines for retail energy suppliers. This article outlines the ins and outs of utility enrollment dates, cut-off periods for different utilities and product types, and what you need to know if your existing contract is ready to expire. Read on to learn more.
What Are Utility Enrollment Dates?
In general, each retail electric and natural gas contract has a start date and end date. In many cases, the start date of your contract is written in month/year format, with the official start date being the meter read date in the start month. When a retail energy provider enters into an agreement with a new customer, it must electronically send the details of the agreement to the customer’s local utility company. The utility company is then responsible for ensuring that the new rate takes effect on the customer’s bill at the start date of the agreement. A utility enrollment date is the last day a switch order can be processed by the utility company in order for the contract to take effect on the next meter read date. There are, however, many nuances when it comes to switching electricity and/or natural gas providers. Let’s explore some of the details.
Standard Electric Enrollment Cut-Offs
In most electric utilities in deregulated energy states, the cut-off date for a supplier switch to occur in any given calendar month is the last day of the preceding month. So, if a new retail electric agreement begins on the customer’s March 2025 meter read date, the supplier must submit a switch order to the utility by the last business day of February 2025. Now, there are certain exceptions to this rule. For example, New Jersey electric utility companies require third-party energy suppliers to submit change orders by the 15th of the month in order for new rates to take effect in the next calendar month period. If your electricity contract end date is nearing, it’s best to consult with your energy broker to ensure you enter into a renewal agreement at the right time.
Accelerated Starts & Split Electric Bills
Some electric utilities, such as those in the state of Pennsylvania, allow energy suppliers to request an accelerated start date. In these utilities, the supplier can request an immediate contract start, which then takes effect in three to five business days. This allows more flexibility as the supplier can submit an accelerated switch on March 5, 2025 to meet a March 10, 2025 meter read. Even if the supplier misses the meter read date, an accelerated switch allows the supplier to take over the customer’s billing mid-cycle, without having to wait for the next calendar month. This can create some confusion for customers, however, as a mid-cycle switch will appear as two supplier charges on a single month’s bill. Take a look at the example below of a mid-cycle, accelerated switch:
In the example above, the customer’s billing cycle is from the 15th of each calendar month to the 14th of the following month. Supplier A billed the customer from February 14, 2025 through March 10, 2025, when Supplier B took over after an accelerated switch. Then from March 10, 2025 to the final meter read of March 14, 2025, Supplier B’s charges appear as a separate billing section. If you have experienced a split bill like this and have questions, please contact our team of energy market experts for help:
Standard Natural Gas Enrollment Cut-Offs
In most natural gas utilities in deregulated energy states, the cut-off date for a supplier switch to occur in any given calendar period is the 15th of the prior month. Unlike electricity which is calculated hourly in the wholesale electricity markets, natural gas prices settle monthly in the wholesale markets. Due to the nature of wholesale gas accounting, suppliers need ample time to request service for a customer’s account.
Energy Contract End Dates
The expiration date of your energy contract might seem confusing. And, since most suppliers will charge you a high variable rate if you forget to renew your contract, it is important to fully understand when your agreement expires. Some retail energy suppliers will note your actual meter read date as the end date on the contract. For example, if the last day of your billing cycle is the 14th of each month, and you have a one-year agreement from January 2025 to December 2025, then the end date reflected on your agreement should be December 14, 2025. In this case, you would want to sign a renewal contract that also begins on December 14, 2025.
On the other hand, there are many suppliers that will simply note the last day of the calendar month prior to your last meter read date. Using the example above, the end date of your contract could also show November 30, 2025. In both cases, you should know that the contract officially ends on the December 2025 meter read date and request that the new service begin on that same billing cycle.
SPECIAL NOTE: This can be additionally confusing if your meter read date is toward the end of the calendar month, and your contract expiration is in the month of February. Due to February being a shorter month, some utility companies do not end the billing cycle until the first week of March. It’s best to consult with an experienced energy broker who can guide you through this unique situation.
Need Help Navigating Your Energy Contract Enrollment?
At Diversegy, our team of retail energy market professionals has over 100 years of combined experience managing contract enrollments for our commercial and industrial customers across the U.S. Whether you have a contract that is nearing expiration or you need to request an accelerated start for a new agreement, we can help. Contact us today to learn more!
