connecticut electricity choice

Eversource Energy will change their default pricing for residential and commercial customers on July 1, 2018. The current prices have been in effect since January 1 of this year while the new prices will stay in effect through the end of the year. Since Connecticut has gone to an energy choice state Eversource Energy, formerly Connecticut Light & Power, has been updating their default prices twice a year on January 1 and July 1, so the change shouldn’t come as a big surprise to most consumers.

Residential customers will see a small drop in their default price of $0.09078 to $0.08530 while small and medium sized commercial customers will see a modest increase from $0.09304 to $0.09422. Customers who are currently purchasing their power from a competitive electricity supplier will not be affected by the change. The Eversource Energy default rate in Connecticut encompasses the charges that would be imposed by a competitive supplier’s electricity plan. The default price is merely the rate customers pay for electricity service who do not shop for prices available in the competitive energy marketplace.

Since the Connecticut residential electricity market became competitive in 2006 the number of participating customers have fluctuated in correlation with the Eversource Energy default price. When competitive electricity suppliers can offer rates that are below the default price more customers flock towards the electricity shopping experience. However, when the default rate and competitive rates are near the same consumers are less likely to shop. Over the years competitive electricity suppliers have attempted to smooth out the shopping droughts by offering customers with more incentives to shop other than low electricity rates. In addition to savings versus the default price, many competitive suppliers now offer renewable electricity rates and long term contracts that can offer customers price stability.

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Electricity bills in the Connecticut Light & Power service area are increasingly being reduced due to competitive power rates being offered by alternative CL&P energy suppliers. Customers are lowering the price they pay for electricity by choosing to sign electricity agreements with alternative energy suppliers who are licensed by the state of Connecticut. Choice awareness among the CL&P residential class has expanded in recent months due to rising generation supply rates that are offered by CL&P. Customers who do not choose an alternative CL&P energy supplier pay a default rate for their electricity; that rate recently saw a 25% increase.

Alternative energy suppliers have entered the Connecticut electricity choice market in hopes of gaining market share by offering electricity rates that are lower than the CL&P default price. Energy shoppers are becoming more aware of their options as alternative electricity suppliers have increased their marketing budgets. The infusion of new energy suppliers are helping to educate a larger pool of customers so that they can take advantage of the best CL&P electricity prices being offered that can result in substantial monthly savings.

Whenever rates see a significant increase consumers start to look for alternative solutions. In energy choice states such as Connecticut, the clear alternative is to shop around for a lower electricity rate. Connecticut people who are switching to alternative suppliers for the first time are often surprised as to how easy the process is and wonder why they haven’t done it sooner. The CL&P basic generation charges, the default rate, had remained stable over the last year before January 2015. With stable prices uninterested customers had little incentive to learn about electricity choice and shop the market. Now with savings above 30%, the incentive is there for customers to learn about alternative energy suppliers and their offers.


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