Six months after some of the worst sticker shock Connecticut electric customers have ever seen, many are still sticking with third-party suppliers instead of going back to dramatically-reduced standard offer rates from our state’s largest, legacy power companies.
Last winter, people were looking anywhere for relief from electric companies’ standard service offers, which had almost doubled. Rates skyrocketed due to spikes in natural gas prices caused by the war in Ukraine.
But now, even with lower standard service rates, some customers have been saying they’d still rather shop around.
The de-regulation of Connecticut’s power industry two decades ago was supposed to bring customers relief from some of the highest electric rates in the country.
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Third-party suppliers who offered teaser rates and other gimmicks soured many ratepayers from making the switch.
“I’ve done it in the past, it didn’t really save as much as it should," Chris Gilbar of Winsted said.
In the past few years, reforms have made it easier for customers to shop around.
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Third-party suppliers on the EnergizeCT.com webpage overseen by the state cannot lock people into contracts or have variable rates, and they’re getting a lot more interest after standard service offers from Eversource and United Illuminating roughly doubled last winter.
Jamar Crawford of Waterbury told NBC Connecticut Investigates that rates last winter hit him hard.
“It was not good because I am a single father and the price of everything is going up," Crawford said.
Evidence of the continued switch is seen in the figures just released by the Public Utilities Regulatory Authority, or PURA, last month.
United Illuminating reported 19.5% of its customers have gone with third-party suppliers - up from 13% at the end of last year.
Eversource said 23.3% of its ratepayers have signed up with third-party suppliers - more than double what it was at the end of last year. Yet...
“We've actually been surprised, it's been less than we expected, it's still only about a little over 20% of our customers are getting their own supplier," said Steve Sullivan, president of Eversource Connecticut Electric Operations.
As of July 1, Eversource’s six-month standard offer is 13.8 cents per kilowatt hour. UI's is 14.3 cents.
Third-party supplier rates available on the EnergizeCT.com page range from 11.4 to just under 15 cents per kilowatt hour.
Both Eversource and UI emphasized they do not earn a profit from the standard electric supply service the state requires them to offer - they earn money on electric distribution charges.
UI warned the lower supply rates are likely short lived. They issued the following statement:
“We are pleased that the drop in energy supply rates, which UI does not mark up or profit from in any way, will provide tangible relief to customers beginning on July 1 for the next six months. While a lower price on our standard service offering is welcome news, our region’s electricity supply market continues to face extreme price volatility due to the over-reliance on natural gas and global fossil fuel markets. We encourage customers to visit the Rate Board at www.EnergizeCT.com to ensure they are well-informed on their energy supply options, and any customers struggling to pay their electric bill can contact us at 800-722-5584 to learn about our assistance programs, including bill forgiveness and flexible payment arrangements.”
According to the Office of Consumer Counsel (OCC), which advocates for ratepayers in their disputes with utilities, this migration from the Eversource and UI standard offers has not been record-setting.
The OCC said a little more than a decade ago, both utilities had around 40% of their customers getting their energy supply through third-party suppliers.
