WEST HARTFORD, Conn. — We are about three weeks away from our electric bills increasing by about $80 a month, due to Eversource and United Illuminating announcing rate hikes going into effect in the new year.
But is it possible to avoid the increase? The answer is yes. But there’s some important information from the state consumers are advised to know first.
Connecticut has what’s called a deregulated energy marketplace. That means you can shop around for a power supplier. But as with most things in life, the devil is in the details and reading that fine print is important.
One tip: Shop around!
“I’ve read about that a little bit. I’ve never seriously considered it but I think I will in the coming year,” said Bill Trempko of West Hartford.
FOX61 put supply shopping to the test on Connecticut’s rate board, Energize CT. We found we could save about $60 a month, and Eversource actually encourages it.
“If they find a third-party supplier with a more attractive per kilowatt hour charge they should certainly shop,” said Eversource Spokesperson Mitch Gross.
But, “It is confusing,” said Marissa Gillett, the Chair of PURA, Connecticut’s Public Utility Regulatory Authority. That’s the rub.
“My concern is that it might look good for the first couple of months and then 6 months later it will spike up again,” added Phyllis Hyman of West Hartford.
Historically since 2015, customers using a third-party supplier have paid a combined $300 million more than standard service customers. But over the last year that’s changed, with customers saving a combined $10 million.
Data from September shows seven of 10 former Eversource customers and six of 10 United Illuminating customers have paid less to switch.
“Make sure that you are reading the terms and conditions. This is not a set it and forget it moment,” said Gillett. “This is something you need to stay on top of month to month.”
And that’s because some contracts contain auto-renewals at a much higher rate and some third party suppliers have gotten into hot water with state regulators for deceptive marketing practices. If you do want to shop just know that you legally cannot be charged a signup fee or extra monthly fees. Your rate must be guaranteed for at least four months, and in Connecticut, you cannot be charged a fee for early termination.
“Sometimes you can lock in rates for longer periods. What folks should know is that the rates we are talking about now will be in effect from January 1 to July 1,” explained Gillett.
If the rates change again this coming summer, make sure the chosen third-party supplier still makes economic sense. It also might be helpful to know that by law, suppliers must send you a letter before your contract auto-renews. If you think a third-party supplier violated any regulations, report it to PURA.
Matt Caron is a reporter at FOX61 News. He can be reached at mcaron@fox61.com. Follow him on Facebook, Twitter and Instagram.
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