Ohio utility rates are set to increase dramatically in June 2023. Residents and business owners can shop for competitive suppliers and potentially save big on their electricity bills. Find out what’s happening with your utility rates and how to shop.
Ohio Utility Rates Increase June 2023
The utilities in Ohio set their Standard Service Offer (SSO) by holding a series of wholesale electricity competitive auctions. These auctions are held between September and April to procure your power. Your rate is the weighted average of the winning bids in these auctions.
Unfortunately, when the utilities held auctions last fall, it was during some of the highest wholesale electricity prices that we’ve seen in recent years.
And now residents and small business owners in Ohio will pay the price.
Our recommendation: Lock in a fixed rate with an alternate supplier for 12 months. You’ll pay less than your utility’s Standard Service Offer.
Here are the new SSO residential rates that will be in effect from June 1, 2023.
- Ohio Edison rates are jumping from 5.8766¢ per kWh to 12.394065¢ per kWh, a 110% increase
- Toledo Edison rates are climbing from 5.9383¢ per kWh to 12.4065¢ per kWh, a 109% increase.
- The Illuminating Company rates are jumping from 5.9039¢ per kWh to 12.4¢ per kWh
- AEP Ohio rates are climbing from 7.49¢ per kWh to 11.84478¢ per kWh.
- Duke Energy rates are climbing from 6.44¢ per kWh to 10.1712¢ per kWh.
AES Ohio (formerly Dayton Power & Light) was able to get the best of the market pricing. Their power purchasing auctions in November 2022 and early April 2023 produced a lower price for their customers. AES Ohio customer rates will drop, from 10.91017¢ per kWh to 10.80709¢ per kWh.
You won’t see this same rate on your bill all year. There’s also a price adjustment in September to reflect the winter season, plus quarterly reconciliations in January, April, July and October.
For most areas of Ohio, you can pay a lower rate by shopping for an alternative supplier.
Shop Supplier Rates in Ohio
Compare Supplier Rates for The Illuminating Company (Cleveland)
| Plan Name | Term | Rate/kWh |
|---|---|---|
| Direct Energy Live Brighter 13 | 13 | 6.49 ¢ |
| Energy Harbor Safe Harbor 5 | 7 | 6.85 ¢ |
| Public Power Electric 8 Month Fixed | 8 | 6.89 ¢ |
| Santanna Energy Services Preferred 12 Month | 12 | 6.99 ¢ |
| Direct Energy Live Brighter 12 | 12 | 6.99 ¢ |
| Direct Energy Live Brighter 18 | 18 | 6.99 ¢ |
| Public Power Electric 18 Month Fixed | 18 | 7.09 ¢ |
| Energy Harbor Safe Harbor 18 | 18 | 7.28 ¢ |
| Public Power Electric 12 Month Fixed | 12 | 7.29 ¢ |
| Energy Harbor Safe Harbor 24 | 24 | 7.39 ¢ |
| Direct Energy Live Brighter 36 | 36 | 7.49 ¢ |
| XOOM Energy SureLock 12 | 12 | 7.79 ¢ |
| XOOM Energy SimpleClean 12 | 12 | 7.99 ¢ |
| XOOM Energy RescueLock 12 | 12 | 8.19 ¢ |
| Direct Energy Go Green Lights 24 | 24 | 8.69 ¢ |
Compare Supplier Rates for AEP Ohio (Columbus)
| Plan Name | Term | Rate/kWh |
|---|---|---|
| Direct Energy Live Brighter 13 | 13 | 6.49 ¢ |
| Santanna Energy Services Preferred 12 Month | 12 | 6.79 ¢ |
| Energy Harbor Safe Harbor 5 | 5 | 6.79 ¢ |
| Direct Energy Live Brighter 18 | 18 | 6.99 ¢ |
| Direct Energy Live Brighter 12 | 12 | 7.09 ¢ |
| Public Power 8 Month Fixed | 8 | 7.09 ¢ |
| Energy Harbor Safe Harbor 18 | 18 | 7.19 ¢ |
| Energy Harbor Safe Harbor 24 | 24 | 7.28 ¢ |
| Public Power 18 Month Fixed | 18 | 7.29 ¢ |
| Public Power 12 Month Fixed | 12 | 7.39 ¢ |
| XOOM Energy SureLock 12 | 12 | 7.39 ¢ |
| Direct Energy Live Brighter 36 | 36 | 7.49 ¢ |
| XOOM Energy SimpleClean 12 | 12 | 7.99 ¢ |
| XOOM Energy RescueLock 12 | 12 | 8.19 ¢ |
| Direct Energy Go Green Lights 24 | 24 | 8.79 ¢ |
How Can Suppliers Offer Lower Rates than Ohio Utilities?
Here’s the problem with the utility auction process. It’s backwards-looking. Your rate is set based on what electricity cost in the past. It’s based on what your utility already paid for its power last year.
Suppliers buy prices in the forward-looking market. Natural gas prices have fallen significantly since January. Wholesale electricity prices typically follow natural gas costs. And right now, electricity prices look great.
That means, while the utility is stuck charging you last year’s expensive prices? Suppliers can give you a rate that reflects the lower electricity rates for 2023 and 2024.
Shop for a Supplier to Get Lower Electric Rate in OH
With deregulation, you don’t have to buy your electricity from the utility. You don’t have to pay the high Standard Service Offer (also called the Price to Compare.)
Instead, you can compare your SSO rate against competitive offers from licensed alternate suppliers.
You can shop for residential electricity rates in Ohio and business electricity rates in Ohio. Just enter your zip code to get started.
New to electricity shopping? Read our article on how to shop for electricity in Ohio