Ohioans could be facing a summer surge in electricity prices — and experts say it’s the result of a system that’s failing to deliver the savings it promised.
Rates are expected to rise by 10% to 15% statewide, according to the Northeast Ohio Public Energy Council, with the largest impacts hitting consumers starting June 1.
Dr. Noah Dormady, an associate professor of public policy at Ohio State University, has studied Ohio’s energy market over the last decade. His research shows that most people who try to shop for electricity end up paying more.
“We compared that back in time for every day. And we had over 3 million records in our database. And over that 10-year horizon. About three quarters of the offers posted that are try – that these suppliers try to sell to customers are well above the default service price.” Dormandy said. “That’s a fundamental market failure.”
The study also found that deals that did save consumers money offered only an 8% to 10% discount.
But when consumers paid more, they were paying an average of 30% to 35% more than the utility’s standard rate.
Another study Dormady published this March reveals part of the problem: a lack of competition in the auctions that set utility rates. Fewer companies are showing up to bid, which drives up the default service price for everyone.
“The price consumers pay for default service is directly tied to how competitive those auctions are,” Dormady explained. “In some cases, only five bidders show up. That’s not enough to create a fair market.”
JP Blackwood, spokesperson for the Office of the Ohio Consumers’ Counsel, agrees the system has become confusing — and sometimes misleading.
“There are really three ways to get your electric supply in Ohio,” Blackwood said. “The standard offer from your utility, community aggregation negotiated by your local government, or marketers — and marketers are where the trouble starts.”
Blackwood said his office frequently hears from consumers who signed up with marketers offering teaser rates or vague promises.
“It might seem like a good deal, but if you don’t read the fine print, you could end up paying double a year later,” he said.
Ohioans like Ann Domeck are already seeing higher prices. After receiving a letter about rate changes, Domeck said she discovered the new negotiated rate for her city was significantly worse than last year’s.
“Unfortunately, the new negotiated rate was so much worse than last year’s that I wound up researching how to opt out of it,” she said.
Domeck says she's never had a marketer come to her door, but if you're approached, Blackwood’s advice is simple: don’t sign anything.
“Your doorstep is not the place to make this decision. You’re only hearing one choice, and often we’ve seen these marketers caught lying,” he warned.
Here are the questions you should ask before signing any electric supplier contract:
- Will I save money compared to the standard offer?
- Is this a fixed rate, variable rate, or promotional teaser?
- Are there monthly fees or hidden charges?
- Is there an early termination fee?
- What happens when the contract ends?
“Your doorstep is not the place to make this decision."
Even for savvy shoppers, it’s a tough time. Dormady said almost all available options on PUCO’s “Apples to Apples” comparison site are higher than the default utility rate starting in June.
Both Dormady and Blackwood point to high-capacity auction prices and increasing electricity demand from AI-driven data centers as key drivers of the current spike. The impact? Consumers across Ohio could see bills rise by $10 or more per month.
So what can you do?
“The cheapest kilowatt hour is the one you don’t use,” Blackwood said. He recommends:
- Installing a programmable thermostat
- Adjusting your thermostat a few degrees
- Switching to LED bulbs (they use 90% less energy than incandescent)
- Sealing windows and insulating your home
“I just tell people — pay attention to your bills,” Blackwood said. “We’ve had consumers say no to marketers at the door, only to find out they were switched over anyway. It’s critical to monitor who your supplier is.”
The Ohio Consumers’ Counsel is also advocating for policy reforms and participating in rate cases to prevent unjustified increases. But until the market becomes more transparent and competitive, Dormady says the safest bet for consumers is sticking with the default utility rate or a trusted aggregation program.
“We were promised competition would bring savings,” Dormady said. “Instead, most Ohioans are paying more — and that’s not how this system was supposed to work.”
Domeck says through her research she feels she got the best deal overall.
“There were certainly other companies that were a lot cheaper,” Domeck said, “But they had penalties for leaving early… or their term was only four months and then it could go up.”
For more information on your bills, you can call the Public Utilities Commission of Ohio at 1-800-686-7826. To try the price comparison tool yourself, click HERE.
