There can be several reasons why a third-party electric supplier may be able to offer electricity at a lower rate than the average supplier. Some possible reasons include:

Lower overhead costs: Third-party electric suppliers may have lower overhead costs than traditional utilities, allowing them to offer lower rates to consumers.

Different pricing models: Third-party electric suppliers may use different pricing models, such as variable rate plans or fixed-rate plans, which can result in lower rates for consumers compared to traditional utilities.

It's important to note that third-party electric suppliers are not regulated by the same agencies as traditional utilities, so it's important for consumers to do their research and carefully compare rates and terms before switching to a third-party electric supplier.