Energy Choice

The New Jersey Electric Discount and Energy Competition Act, signed into law in 1999 and otherwise referred to as New Jersey Energy Choice, provides customers the option to choose their natural gas and electric suppliers.  At NJNG, we support your right to choose an energy supplier.  

What Does this Mean?  

With New Jersey Energy Choice, you can purchase your natural gas from a third-party supplier – a company other than NJNG. The price you pay for natural gas, sometimes also referred to as the commodity price, depends on the terms and conditions of the agreement you enter into with the third-party supplier of your choice.

What Remains the Same?

Regardless of your natural gas supplier, NJNG will continue to deliver natural gas to your home or business. And if your supplier fails to provide us with natural gas to deliver to you, we’ll serve as backup to ensure there is no interruption of service.

In the event of a natural gas leak or outage, NJNG will continue to provide emergency service regardless of which natural gas supplier you use. If you suspect a natural gas leak, immediately leave the premises and call 800-GAS-LEAK from a safe location.

Will a Third-Party Supplier Save Me Money?

NJNG’s bill for residential and small commercial accounts consists of natural gas costs, delivery costs, and customer charges. As the distribution company, all NJNG customers incur a delivery charge and monthly customer charge regardless of their supplier. 

When considering a third-party supplier, remember to compare the natural gas price charged by the supplier to the price charged by NJNG. The per-therm rate listed as BGS (Basic Gas Supply Service) in the bill calculation box on your NJNG bill is the utility price to compare. Learn more about the components of your NJNG bill and NJNG historical rate information.

If the supplier offers a fixed price lower than NJNG’s price to compare, you may save on your natural gas costs during the term the supplier’s fixed price is in effect. However, potential savings will be impacted if NJNG’s natural gas price changes.

Some suppliers offer a variable rate contract, which most often fluctuates according to seasonal pricing, and may be higher or lower than NJNG’s price for the same period. Ask prospective suppliers to help you determine projected savings, especially for variable rate offers. 

It is important to understand all the terms and conditions of your contract before agreeing to purchase your natural gas from a third-party supplier. For more information on New Jersey Energy Choice and shopping for a third-party supplier, visit the Web sites of the New Jersey Board of Public Utilities and/or the New Jersey Division of Rate Counsel.