Consumer protection regulations exist to protect both customers and sellers against unfair market practices. In Connecticut the Public Utilities Regulatory Authority (PURA) has been working to regulate private third-party electricity suppliers.

Third Party Electricity Providers in CT

In 1998, the state legislature passed laws that allowed companies other than the electric utilities to sell electric supply. Unfortunately, many customers of suppliers have paid more than they would have on the utility’s standard service rate and PURA found that some suppliers engaged in questionable practices such as:

1. Targeting low-income households with high rates.
2. Promising low electricity costs for an initial period of time, but then implementing much higher electricity costs on renewals.
3. Engaging in deceptive marketing.

With Connecticut already an expensive state for energy costs, these practices required stronger regulation and strict oversight.

Connecticut’s Consumer Protection Laws Ensure Reasonable Electricity Costs

PURA continues to monitor the supplier market to help customers get the best results. PURA passed new rules to prevent third party competitive suppliers from engaging in illegal marketing and the General Assembly passed legislation banning variable rates and cancellation fees for residential customers. PURA also recently allowed customers with a financial hardship designation to contract with a supplier, but capped the rate a supplier could charge those customers at the utility’s standard service rate.

Learn more about PURA’s involvement in Connecticut’s consumer protection efforts for electricity customers.