Every business in Con Edison territory buys its energy supply from one of two places: Con Edison’s default supply, or a licensed Energy Service Company (ESCO). Either way, Con Edison still delivers the power. This guide explains how the two options work, how each is priced, and what to ask before you choose.
The short answer
- Con Edison default supply: Con Edison buys energy in the wholesale market and passes the cost to you. The rate changes monthly.
- ESCO supply: you sign a contract with a licensed supplier. Your supply price follows that contract — fixed, variable, or index.
- Delivery does not change. Con Edison delivers your energy, reads your meter, and responds to emergencies in both cases.
- Neither option is always cheaper. An ESCO rate can be higher or lower than Con Edison’s default supply rate in any given month. Savings are not guaranteed.
What stays the same when you switch
Switching supply changes who sells you the energy — not the wires, pipes, or meter. Con Edison says it will “still deliver your energy reliably, read your meter, answer your service calls, and respond to all emergencies” for customers who buy from an ESCO (Con Edison). You can also choose one consolidated bill instead of separate supply and delivery bills.
For an outage, gas leak, or any emergency, always call Con Edison at 1-800-75-CONED (1-800-752-6633).
How Con Edison default supply is priced
If you have never chosen a supplier, you are on Con Edison’s default supply. Con Edison buys this energy in the wholesale market and passes the cost through on your bill (Con Edison guide to rates).
- Market Supply Charge: the per-kWh price of the electricity itself.
- Merchant Function Charge: covers Con Edison’s cost of buying and selling energy in the wholesale market, including administrative costs.
- Monthly adjustment: Con Edison adjusts supply charges monthly to reflect energy costs, which move with weather, supply, and demand.
The upside is simplicity: no contract and no term. The tradeoff is that your supply price can move every month, which can make budgeting harder for businesses with large or seasonal loads.
How ESCO supply is priced
With an ESCO, your supply charge is set by your agreement with that supplier, not by Con Edison’s Market Supply Charge (Con Edison). Commercial ESCO contracts usually use one of three structures:
- Fixed: one supply rate for the whole term. Predictable, but you keep that rate even if market prices fall.
- Variable: the rate can change month to month under a method disclosed in your contract.
- Index: the rate follows a published market index plus a stated adder. The formula is transparent; the price still moves with the market.
Read more about each structure on our How It Works page.
Side by side
| Con Edison default supply | ESCO supply | |
|---|---|---|
| Who sets the supply price | Con Edison, based on wholesale costs | Your contract with the ESCO |
| How often it changes | Monthly | Depends on structure: fixed, variable, or index |
| Contract and term | None | Yes — term, renewal, and any early-termination fee are in writing |
| Who delivers energy | Con Edison | Con Edison |
| Who handles emergencies | Con Edison | Con Edison |
| Bill | Con Edison bill | One consolidated Con Edison bill, or separate bills |
Questions to ask before you choose
Compare contract length, renewal terms, and any early-termination fees. For a commercial account, also ask:
- How much does budget certainty matter to us compared with following the market?
- Is our usage steady, or does it swing by season (heating, cooling, kitchen load)?
- What is the exact term, and what happens at renewal?
- Is there an early-termination fee, and how is it calculated?
- Is a broker or consultant being paid, and how? (This must be disclosed.)
- Does the price quote cover all of our meters and accounts?
How switching works — and switching back
You enroll through the ESCO using your Con Edison account number. The start date depends on your meter-read schedule. You can later switch to a different ESCO or return to Con Edison (Con Edison); check your contract for term and any early-termination terms first.
Common questions
Will my service be interrupted if I switch?
No. Con Edison keeps delivering your energy. Only the supplier on the supply portion of your bill changes.
Will I get two bills?
Not unless you want to. You can choose one consolidated Con Edison bill that shows both supply and delivery.
Is an ESCO cheaper than Con Edison?
Not necessarily. Depending on the plan, term, and market, an ESCO rate may be higher or lower than Con Edison’s default supply rate at any time. Savings are not guaranteed.
Can I go back to Con Edison supply?
Yes. Review your contract’s term and early-termination provisions before you do.
Talk to a New York supplier
Buy Energy Direct is a licensed New York ESCO serving commercial accounts in Con Edison territory (NYC and Westchester) and commercial natural gas customers in NYC. Request a quote or call (212) 680-4253. Requesting a quote does not enroll you in service. Savings are not guaranteed.