Buying deregulated power in Connecticut just got easier, but experts advise businesses be wary of hidden charges when signing up with an alternative energy supplier.
Since Connecticut is a deregulated power state, the electric utilities don’t collect a profit on the generation portion of their bills.
Business and residential customers can elect to switch to an alternative supplier, whose rates tend to be lower than the default utility rates. Despite the savings that can come with switching, Connecticut Light & Power estimates that 47 percent of Connecticut businesses still use the default utility rates.
Hoping to help businesses make the switch, a new Web site — www.universalenergybrokers.emexpower.com – started marketing in December to Connecticut. The site offers real time pricing quotes based on zip code.
The new site, along with the state government-backed CTEnergyInfo.com, gives businesses a variety of options in suppliers.
While the alternative suppliers’ rates are almost always lower, customers should be very cautious and very informed about what they are paying for, said Elena Cahill, CEO of Globele Energy. The default utility rates are all-inclusive, but an alternative supplier’s rates may not be, charging extra for items such as congestion, Cahill said.
When shopping for supplier, customers should ask for the “all-in rate,” Cahill said.
Customers should monitor the exit option on contracts as well. Some allow the supplier to switch to a variable rate. Of supplier contracts she’d reviewed, Cahill said 80-90 percent have excess fees or exit option issues.
