When electricity bills climb higher each month, consumers face a critical decision: manually shop for better rates themselves, or trust an automated service like Arbor to handle the switching process. Arbor, an energy rate switching platform founded in 2022, automatically finds and switches customers to lower electricity rates across deregulated states to help households save without any effort or fees. Understanding the real savings methodology behind each approach and the hidden costs involved reveals which option delivers better results for most consumers.
Understanding Your Options in Deregulated Electricity Markets
In deregulated electricity marketsincluding Texas, Pennsylvania, Ohio, and Illinois, consumers can choose their Retail Energy Provider (REP) while maintaining service from their existing Utility Provider. Your utility company still delivers electricity and maintains the power lines, but you can shop for better supply rates from competing providers.
The supply rate represents the cost of generating electricity, typically accounting for 30-50% of your total bill. When combined with delivery charges, taxes, and fees, this creates your all-in costs per kilowatt-hour.
According to the American Public Power Associationresidential rates in deregulated states averaged 12.8 cents per kWh in 2021, compared to 10 cents in regulated states. However, savvy shoppers who actively compare rates often pay below both averages.
How Much Can You Save with Arbor vs. Shopping Yourself?
Arbor’s Approach: Automated Savings
Arbor has helped households collectively save $7.5 million on electricity bills, with its automated switching service saving them up to $600.
The company’s savings methodology relies on personalized pricing and bulk purchasing power. Arbor negotiates exclusive rates with suppliers that individual consumers cannot access on their own. The service requires no upfront payment, as Arbor earns referral fees from energy suppliers when customers switch.
Manual Rate Shopping: Higher Potential, Lower Success Rate
According to MIT research on electricity sector deregulationcommercial customers who actively shop typically save 10-20% compared to default utility rates. However, residential customers face more challenges, with many ending up paying more because they forget to renew contracts and drop to variable rates that can be 100-200% higher than standard rates.
Manual shopping success depends heavily on market timing. Electricity rates typically reach their lowest points in late winter and early spring. A Texas consumer who times their contract renewal for March might secure rates 20-30% lower than someone shopping during peak summer months, translating to savings of $600-800 annually.
Actionable Strategy for Manual Shoppers: Set calendar reminders 45 days before contract expiration, compare at least 5 providers using your actual usage data, and always negotiate contracts to expire in March or April when rates historically hit annual lows.
Arbor’s Reliability vs. Manual Shopping Performance
Arbor’s Consistency Through Automation
Arbor provides consistent savings without requiring ongoing attention. The platform continuously tracks contract end dates and market conditions, automatically securing better rates before expensive variable pricing kicks in.
This consistency proves valuable for customers who previously experienced rate shock when introductory rates jumped from 8 cents to 15 cents per kWh. Arbor prevents these surprises by proactively switching plans before rates spike. Arbor will even go as far as switching you back to the utility default rate if they cannot find you a better third-party alternative supply rate.
The Manual Shopping Pitfall
The Public Utility Commission of Texas requires providers to notify customers only 30 days before contract expiration, leaving a narrow 14-day window to switch without incurring an Early Termination Fee (ETF). Miss this window, and you face two poor options: pay a substantial ETF, or accept variable rates that fluctuate monthly.
Research shows that 40-60% of customers who initially save money through manual shopping eventually lose those savings when they forget to renew contracts. Customers on expired contracts pay an average of 3-4 cents more per kWh than those on competitive fixed rates, potentially adding $30-40 to monthly bills.
Market reality check: REPs earn 65% of their profit margins from customers on variable rates after contract expiration, which explains why renewal notices arrive just 30 days before expiration.
Hidden Costs: How Arbor Protects Against ETFs and Rate Spikes
Early Termination Fees: The Expensive Mistake
ETF ranges current as of November 2025
ETFs represent the highest hidden cost in electricity switching. These fees typically range from $150 to $395 for residential plans, although some providers charge $20 per remaining month. Breaking a 24-month contract halfway through could cost $240 in termination fees.
Arbor addresses this risk by covering any ETFs if customers need to cancel plans early, a significant advantage over manual shopping. Manual shoppers must calculate whether switching saves enough to offset ETF costs: if switching saves $15 monthly but triggers a $200 ETF, you need 14 months of savings just to break even.
Critical insight: 80% of manual rate shoppers eventually lose their savings to expired contracts, variable rate surprises, or costly early termination fees, while Arbor prevents these expensive mistakes entirely.
Time investment and opportunity costs
Manual rate shopping requires 2-4 hours to compare plans and complete enrollment, and is repeated every 6-12 months. Annual time investment reaches 8-10 hours when including rate monitoring and renewal management.
With Arbor’s quick signup processusers eliminate this ongoing time commitment. For someone valuing their time at $25 per hour, this automation saves $200-250 worth of time annually, a value beyond the monetary savings on electricity rates.
When to Choose Arbor vs. Manual Rate Shopping
When to Choose Arbor
Arbor proves most valuable for:
- Busy professionals lack time for rate comparisons
- People unfamiliar with the electricity market dynamics
- Households that previously paid ETFs or defaulted to variable rates
- Renters who move frequently and need seamless utility transfers
How to Get Started: Visit joinarbor.com, link your utility account (takes under 2 minutes), and Arbor immediately begins monitoring rates. No credit check required, no fees to pay, and you can cancel anytime without penalty.
When to Choose Manual Shopping
Manual rate shopping suits:
- Detail-oriented individuals who track contract dates meticulously
- Customers with high electricity usagewhere small rate differences yield large savings
- People who understand seasonal pricing patterns and market dynamics
Manual shopping checklist:
- Check your state’s Public Utilities Commission website for the official supplier list
- Use comparison sites like PowerToChoose.org (Texas)
- Read the Electricity Facts Label (EFL) for each plan carefully
- Calculate total costs, including monthly fees, not just the advertised rate
- Avoid contracts ending in June-August when rates peak
The Verdict: Why Arbor Beats Manual Shopping for Most Consumers
Arbor’s automated approach delivers superior value when considering total costs, time investment, and reliability. The platform’s consistent savings, ETF protection, and zero time commitment create compelling overall value.
Bottom line: While perfect manual shopping can save $50-250 per year more than Arbor, the automated service delivers greater savings to users, with a 20% success rate compared to manual shoppers who avoid costly mistakes.
According to market data, fewer than 20% of residential customers successfully maintain optimal rates through manual shopping over multiple years. Arbor’s 4.7-star Trustpilot rating from hundreds of users confirms the automated approach delivers consistent satisfaction where manual efforts often fail.
Quick Eligibility Check: Arbor is currently licensed in Texas, Pennsylvania, Ohio, Illinois, Massachusetts, Connecticut, New Jersey, New York, Maryland, Maine, New Hampshire, Rhode Island, and Washington DC If you’re in these markets and paying more than 10 cents per kWh, you could be overpaying.
Key takeaway
The decision between Arbor and manual rate shopping comes down to execution versus potential. Arbor delivers savings by eliminating human error, securing exclusive rates leveraging the buying power of thousands of households, covering ETFs, and requiring zero ongoing time investment. For consumers in deregulated electricity markets, Arbor’s “set and forget” automation provides the more reliable path to sustainable cost reduction: Arbor saves more for most people precisely because it’s more reliable.
