How to Switch Electricity Providers in New Jersey: Rules, Rights and a Checklist

Yes, New Jersey homeowners and renters can switch electricity providers. You keep your utility (PSE&G, JCP&L, Atlantic City Electric or Rockland Electric) for delivery, outages and billing, and choose a licensed Third Party Supplier (TPS) for the supply part of your bill. The state's official place to start is NJ Power Switch, run by the New Jersey Board of Public Utilities (BPU), and you have seven days after your utility confirms the switch to cancel.

This guide explains how electric choice works in New Jersey, what the BPU requires suppliers to tell you, which fees to watch for, and a step-by-step checklist you can follow before you sign anything.

Who regulates electricity suppliers in New Jersey?

The New Jersey Board of Public Utilities (BPU) licenses Third Party Suppliers and regulates the utilities that deliver your power. Its residential pages explain that, under the Electric Discount and Energy Competition Act (EDECA), residential customers can shop for electric and natural gas supply, while the local utility keeps delivering the energy and responding to emergencies (see the BPU residential customers page).

One point is easy to miss: the BPU regulates the utility's default supply rate, but it does not regulate the prices that Third Party Suppliers charge. The BPU says shopping with a TPS "affords basic consumer protection safeguards," but supplier rates themselves are not set by the Board (NJ Power Switch: your rights). That makes your own comparison important.

The official shopping site: NJ Power Switch

NJ Power Switch (nj.gov/njpowerswitch) is the BPU's consumer education site for shopping. It walks you through four steps: find your Price to Compare on your utility bill, learn how supplier pricing works (fixed versus variable), review the one-page TPS Contract Summary, and compare each offer to your Price to Compare. It also links to lists of licensed suppliers by utility area. The BPU notes that shopping "may save you money," but that this "is not always the case."

The BPU's older shopping page adds practical questions to ask, such as how long a price offer is valid, how long it will take service to begin, and whether there are penalties for leaving a contract early.

How switching works in New Jersey

Your electric bill has two main parts: delivery (the wires, poles and meter, always handled by your utility) and supply (the electricity itself). If you do nothing, your utility provides supply under Basic Generation Service (BGS), a rate the BPU regulates. If you choose a TPS, only the supply portion changes.

• Delivery stays the same. Your utility keeps maintaining the lines and restoring power after storms. The BPU says choosing a supplier "has no impact on the reliability or safety of your service."
• The supplier sets the supply price. That price can be fixed for a term, variable month to month, or a mix.
• You can usually keep one bill. The BPU notes your bill may still come from your current utility.
• You can go back. You may return to your utility's default supply, subject to the terms of any contract you signed.

Your rights with a Third Party Supplier

The BPU publishes a list of residential customer rights regarding Third Party Suppliers. The most useful ones for a household are:

Protection	What the BPU says
Cancellation window	After you switch, you have 7 days to notify your utility if you change your mind.
Written confirmation	Your utility must confirm, in writing, your decision to choose a new supplier.
No switching fee	You may not be charged a fee to switch to or from a new supplier.
Clear pricing	Ads and contracts must state the price per kWh over the contract term and how long the price is valid.
Full fee list	Contracts must list all fees, including termination penalties, late fees and interest charges.
Moving	You can end your contract on 48 hours' notice to the supplier if you move.
Supplier-initiated termination	A supplier must give at least 30 days' written notice before ending your service.
No slamming	Your supplier cannot be changed without your express consent (except through an authorized municipal or county aggregation program). If you are switched without permission, you pay only what you would have paid the supplier you chose.

The one-page Contract Summary

New Jersey requires a standardized TPS Contract Summary for residential customers, provided in English and Spanish. It must show, among other things:

• Whether the price is fixed or variable, and when a fixed price would turn variable.
• The supply price per kWh, including any introductory rate and how long it lasts.
• A plain-language statement that the price may not always save you money.
• Whether there is an early termination fee, and how much.
• The contract term and what happens at the end if you do not agree to a renewal.
• For variable prices, whether there is a ceiling and whether changes are tied to a published index or to the utility's Price to Compare.
• An estimated time frame for switching you back if you cancel.

If a salesperson cannot give you this summary before you agree, treat that as a reason to wait.

Contract terms and fees to understand

Fixed vs. variable. A fixed price stays the same for the term. A variable (floating) price can rise or fall monthly. NJ Power Switch suggests asking whether a fixed price can change to a variable one, and whether there is a cap on how high a variable price can go.

Early termination fees. New Jersey does not ban them for residential contracts, but they must be disclosed in the contract and the summary. Ask the exact amount before you sign.

Renewal. Ask what happens when the contract ends. The Contract Summary must explain the outcome if you do not give affirmative consent to a renewal, so read that line carefully.

Taxes. NJ Power Switch advises that a supplier's quoted price should include Sales and Use Tax when you compare it with your Price to Compare.

Step-by-step checklist: switching electricity providers in New Jersey

1. Find your Price to Compare. It is on your utility bill. Note your monthly kWh, too. You can estimate the effect of different rates with our electric bill calculator.
2. Check context. See how your utility's rates compare across the state on our New Jersey electricity rates page, and in the EIA New Jersey electricity profile.
3. Use the official supplier list. Start from NJ Power Switch and confirm any supplier is licensed by the BPU.
4. Get the Contract Summary. Compare the price per kWh (with tax), the term, whether it is fixed or variable, and the termination fee.
5. Do the math with your usage. Multiply the difference between the offer and your Price to Compare by your monthly kWh. Remember the Price to Compare can change over time.
6. Enroll directly. Sign up through the supplier's own phone line or website, not through someone who approached you unannounced.
7. Watch for the utility's confirmation letter. Your 7-day cancellation window runs from that confirmation.
8. Put the end date on your calendar. Review the offer again before the term expires so you are not surprised by a renewal price.

Red flags

• A caller or door-to-door agent who asks for your utility account number before you have decided to switch.
• Claims that the switch is required, or that the agent "works with" your utility.
• Guaranteed savings without a clear explanation of what the savings are measured against.
• A low teaser rate with no clear statement of what happens after the first few months.
• A variable rate with no cap and no explanation of how it is set.
• No one-page Contract Summary, or pressure to sign before you have read it.
• A switch notice from your utility for a supplier you never chose. Report it: the BPU lists 1-800-624-0241 for questions and complaints.

Is switching worth it in New Jersey?

It depends on the offer and on how your utility's default price moves. For context, the average US home paid $209 for 1,152 kWh in August 2026; your own bill depends on your usage and your utility. Switching can reduce your supply cost when a fixed offer is lower than your Price to Compare for the whole term, but there is no guarantee. The BPU itself says shopping is not always cheaper. Compare carefully and keep your contract dates handy.

For more background on how electricity prices vary from state to state, see our electricity rates by state hub.

Next steps

Pull your latest bill, note your Price to Compare and monthly kWh, then run the numbers in our electric bill calculator. Compare those results with current offers listed through NJ Power Switch, and check our New Jersey electricity rates page for the bigger picture.