Residential Providers in Connecticut
February 15, 2010
Currently in Connecticut there are ten retail electric providers offering service to residential customers as an alternative to CL&P and UI GSC default rates. However, of these ten, only four of them (Direct Energy, ConEd Solutions, MX Energy, Dominion) offer fixed rates. With a fixed rate you know the exact rate you will pay for electricity for a set term (usually 12 months). Shopping for competitive Connecticut electric rates can save both residential and commercial customers money.
The other six providers offer different types of variable rates that can, and often do, change from month to month. These variable rate providers often advertise a low introductory rate that will be good for the first month of service. After the initial month, you can expect the rate to increase.
These providers are in a marketing war with each other. They will show that they are offering savings versus CL&P and UI default rates with their introductory rate. However there is no guarantee that they will continue to show savings after that first month. They are hoping that once you switch to their service you will remain their customer for a long period of time no matter how high their rates become. On the plus side, these variable rate contracts are usually month-to-month, so if you keep an eye on your rate you can leave if it becomes too high.
If you are a homeowner with good credit we recommend looking into one of the providers with fixed rates. With a fixed rate you will know exactly how much you are savings versus CL&P or UI default rates, and you will have the peace of mind of knowing that the rate will be good for a set period of time. The electricity market has a wholesale and retail side. The wholesale market prices are constantly changing and have proven to be very volatile over the years. Variable pricing can result in huge rate increases over a short period of time.
