Patriot Energy Alert

Patriot Energy is an electricity brokering company.  They are currently offering electricity contracts to businesses in Pennsylvania with deceptive language that could cost your business thousands of extra billing expenses.

First, it is important to understand that electricity brokers should not be involved in the practice of offering their own electricity contracts.  The practice of electricity brokers in Pennsylvania should involve obtaining contracts from licensed electric suppliers for the client, negotiating the terms and conditions of those contracts for the benefit of the client, and then offering those contracts to their client.  Patriot Energy is not licensed to offer retail electric supply contracts to customers.

Patriot Energy uses their false electric supply contracts to mislead customers into thinking they are signing lower fixed rates than other competing electric suppliers.  In reality, the low fixed rate stated on the Patriot Contract is artificial and does not lock the customer into any guaranteed rate.

At the top of their contract in a big friendly box, their contract displays the words “Fixed Rate” followed by the rate.  However, at the bottom of the contract written is very small print surrounded by more small print reads the following sentence:

“This document is not a contract for electricity supply and that Patriot Energy Group Inc has not guaranteed that it will be able to place the above account with a competitive supplier on the terms and conditions set forth herin.”

Furthermore, the small writing also includes this sentence:

The actual terms and conditions pertaining to electric supply……will be defined by the competitive electric supply contract entered into by Patriot Energy Group”

By signing the “Patriot Energy Contract” you are merely giving them the power to sign any type of electricity contract on your behalf.  Even though a rate is displayed on the “Patriot Energy Contract”, the contract language allows them to sign any rate for your business that they wish, with any set of terms which can include a number of hidden charges and pass through expenses that should be included in the rate but are not.

I highly advise businesses not to sign this “Patriot Energy Contract” on the simple fact that it does not guarantee the customer anything and instead only gives Patriot Energy the authority to sign your business into any type of electricity supply contract they wish.  Furthermore, Patriot Energy is not licensed as an electric supplier which means that they are not licensed to be offering electric supply contracts.

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Business Electric Contracts

As electricity deregulation markets have matured around the country over the last several years, electric suppliers have gotten tricky on how they present their offers on contracts.  In short, the energy supply charge should include several components including the energy commodity, capacity, line losses, ancillary charges, and sometimes transmission charges depending on your specific market.   Many suppliers will show a rate that just includes the energy commodity charge, and then pass on the extra charges through another category on the bill.

Why do they do this?

Simply put, they do this to make their rate look lower than their competitors.  For example, one supplier might give a rate that includes everything for 7.5 cents.  Another supplier might give a rate that just includes energy commodity for 6 cents.  At first the 6 cent offer appears to be great.  However, when you get the bill you will see a line for the 6 cent charge followed by an additional section that has another 3 cents for all of the addition charges.  So in the end, that 6 cents is really 9 cents.

How do they get away with this?

It is all in the electricity contract!

It is extremely important to take the time to review all electricity contract offers to ensure that you are getting a true apples to apples comparison.

One of the reasons ElectricityWatch.org was set up was because I went through such a deceitful practice.  I signed an electricity contract for a fixed rate of 7 cents when in reality I ended up paying 8-9 cents per month.  During this time I could have paid a fixed rate of 6.65 cents.

Though everything is in the contract, many electricity companies have gotten very smart as to how they word their electric contracts so that the consumer overlooks important factors relating to the rate.  If you would like us to review your business electric contract, feel free to post a comment with the request and we will contact you to do so.

Keep in mind this is for business electricity customers.  Residential customers are protected by their state utility commissions from such practices.  Businesses, however, are expected to do their own due diligence.

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