An energy services company, or ESCO, is an unregulated supplier of gas and electricity that offers either a fixed or variable rate for its products in competition with the local regulated utility. A fixed contract ties the customer to the ESCO's service for a specified number of months. Switching natural gas providers is permitted at any time, but a fixed-rate ESCO customer may have to pay a cancellation fee, typically between $35 and $150.

Electricity choices for 2006 had to be made during the last three months of 2005. Currently six ESCOs offer natural gas options, according to the Web site www.energyguide.com.

Although you can only pick an ESCO for electricity once a year, natural gas contracts with ESCOs vary, and you don't have to have the same supplier for both electricity and natural gas.

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