The state of Connecticut works to promote fairness for consumers of third party electricity suppliers, in part, through consumer protection regulations. The equitable oversight of these suppliers contributes to affordable and sensible energy costs for CT residents.
What are Competitive Third Party Energy Suppliers?
Third party competitive energy suppliers came into being in 1998. CT lawmakers sought to make energy more affordable to residents by allowing them to choose other electricity supplier. Third party, competitive suppliers are licensed by the Connecticut Public Utilities Regulatory Authority (PURA) to sell electricity to consumers. Customers seeking a third-party supplier are encouraged to shop on EnergizeCT.com, where they can compare all rates relative to the utility’s standard service rate.
Most residential customers receiving supply from a third-party supplier will continue to receive their monthly bill from Eversource or UI.
At any time, customers may switch back to their utility’s standard service rate. This can be done online with the transition taking up to two days. Current bills to date will then be prorated.
Protections for Residential Customers
Governor Lamont’s Public Act 21-117 prohibited cancellation fees for residential customers.
Additionally, in 2015 variable rates were banned for residential customers. Now, a residential customer’s contract must last for at least four months.
PURA recently ruled that financial hardship customers may contract with a supplier, but their contract must be at a rate equal to or less than the utility’s standard service rate.
Despite the work that has been done to protect customers from harmful supplier practices, customers still must be vigilant if they contract with a supplier. Almost all supplier contracts automatically renew and they often renew at rates much higher than their initial contract rate. Customers should calendar when their supplier contract is set to expire and ensure the renewal rate is less than the utility’s standard service rate. Customers also should check the supply summary (right side of the first page of their bill) each month to make sure their supplier rate is saving them money.
Freedom of Choice For Eversource Customers
Eversource customers can choose alternate third party electric suppliers. However, they continue to receive their monthly bill from Eversource.
After making this switch, they can also choose to go back to their Eversource Standard Service. This can be done online with the transition taking two days. Current bills to date will then be prorated.
Customers should also check to see if cancellation fees from the previous electric supplier was applied.
Cancellation Fees Prohibited For Contracted Electricity Customers
Governor Lamont’s Public Act 21-117 prohibits cancellation fees for residents who were contracted with an electric supplier.
This act also grants PURA greater oversight over third party electricity providers.
Targeting Low Income Customers
Some competitive suppliers resort to unethical sales tactics promising bigger savings for new customers. However, they then lock these consumers into contracts that end up costing them more money in the long run.
PURA Offers Consumer Protections for Low Income Residents
PURA has been given discretion to prevent “hardship utility” customers from being switched to any third party competitive electric supplier.
Variable Electric Rates Banned in CT
In 2015, PURA issued a ruling that bans variable rate electric contracts in Connecticut, representing the first time this was ever done in the entire nation.
Variable electricity rates produce unpredictable cost increases month after month. Customers are usually unprepared for these price escalations.
Under these types of contracts, residents are first given an initial “teaser” rate that later expires. Afterwards, they pay according to a confusing variable rate that fluctuates each month.
Both PURA and Connecticut legislators were concerned that these cost increases produced a negative impact on the livelihood of
- low income residents
- struggling parents
- fixed income seniors
- customers using electricity for heat
- individuals with limited English
According to PURA’s ban, third party electric suppliers must offer customers a fixed rate for four months. They can then offer renewal terms with the option of presenting a new price. However, this new rate cannot be increased for at least 4 months.
This law prohibits new contracts created with variable rate pricing by third party electric suppliers.
PURA's overarching mission is to regulate the services and rates of investor owned utility companies (natural gas, water, electricity, telecommunications etc.). The organization protects the rights of CT residents to “safe, adequate and reliable utility service” at reasonable rates. PURA also supports the rights of providers to earn a reasonable return on their investment.