Connecticut Businesses Who Power Shop Can Save Money

The state of Connecticut reported that as of January 31, 2010 a staggering 58% of small businesses are still on default service with either CLP or UI as opposed to shopping the competitive electricity market and saving money.  The number for residential customers is even higher at 83%.

What makes these numbers so shocking is that competitive rates have in recent months dropped due to a decline in natural gas prices.  Default rates for Connecticut Light & Power (CLP) small business customers is 11.723 cents per kilowatt hour.  Rates can be found in the competitive market at 9.7 cents per kilowatt hour, which equals savings of 19%.

One theory as to why so many businesses have been slow to switch is the uncertainty of the electricity contract that needs to be signed in order to realize these savings.  Consumers should not worry about the contract and instead see it as a benifit.  When you elect to receive a low fixed rate with a competitive provider, they will provide you with a contract that will state the term for which you will receive the low rate.  You should be worried if a provider does not offer you a contract.  In the non-contract scenario you are putting yourself in an position where the provider can charge whatever they want.  The contract binds them to offer you the rate that you agreed upon and will be stated in the agreement.

For more information on electricity contracts or for a list of providers that can offer you savings, feel free to email us, leave a comment, or join our club.

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{ 2 comments… read them below or add one }

D. Friedman April 21, 2010 at 8:53 am

Savings of 19%? Does anyone know if this is true?

I have an office building where I spot the 2-3K monthly bill for the tenants. If these savings are true I am all on board, but there has to be a catch….does anyone know what it is?

name April 27, 2010 at 5:02 pm

Its not a catch. The default rates are determined from auctions that clp and UI performed in previous years when energy prices were higher. Today energy prices are lower, this is how the savings are achieved. Fixed rates can easily be locked in at the 9 cent range like the article says, and if you havent done anything you are most likely paying the default rate of 11.7 cents. You can see it right on your bill.

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