Your electric bill splits into two very different charges, and confusing them is why people 'switch providers' and save nothing. Here's what each half is and where the real savings hide.
Supply (or generation) is the cost of the electricity itself — the part you can shop for in deregulated areas. Delivery (or distribution) is what the local utility charges to carry it over the wires to your house, and it's fixed no matter who you buy power from. You can change one; you're stuck with the other.
Third-party suppliers can only beat the supply half of your bill — and only if their rate actually undercuts your utility's default. Many teaser rates jump after a few months to more than you were paying. If you switch and your delivery charges are unchanged (they always are), the savings can only ever come from a genuinely lower supply rate.
On the bill, locate the supply/generation line and divide its dollar amount by your kWh used to get your true per-kWh supply rate. That single number — not the advertised 'as low as' rate — is what you compare against any offer. If an offer isn't clearly below it (after any monthly fee), it's not a deal.
Beyond supply and delivery, most bills carry a few smaller lines: a fixed monthly customer charge (a flat fee just for having an account), taxes and regulatory riders, and sometimes a separate transmission charge. The customer charge is why using almost no power still produces a bill. None of these are shoppable — they're worth understanding mainly so you don't mistake them for something an offer can lower.
The common playbook: a low "intro" rate for a few months, then an automatic roll to a much higher variable rate; an early-termination fee that traps you if you try to leave; and "green energy" or gift-card add-ons that quietly cost more per kWh. None of this is illegal, but it relies on you not checking the fine print. Read the contract's rate after the intro period, the term length, and any exit fee before signing anything.
A fixed supply rate locks your per-kWh price for the contract term — predictable, and good when default rates are rising. A variable rate floats month to month and is where most "gotcha" bills come from, because it can spike with little warning. If you do shop a supplier, a fixed rate you've confirmed is below your utility's default is the only version that reliably saves money.
In some regions you can subscribe to a community solar farm and receive bill credits, or enroll in utility programs like time-of-use pricing, budget billing, or efficiency rebates. These aren't "switching suppliers" — they work through your existing utility. Time-of-use plans in particular can pay off if you can move laundry, dishwashing, and EV charging to off-peak hours; check what your utility offers before assuming a third party is your only option.
Delivery is fixed and supply savings are small, so the biggest lever is usage. Heating and cooling dominate most bills; a smarter thermostat schedule, sealing leaks, and shifting heavy use off peak-rate hours cut the kWh on both halves of the bill. Reducing consumption beats chasing supplier rates almost every time.
Once a year, pull a recent bill and run through this — it takes five minutes and catches the money leaks: