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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CLP and UI Lower Rate Options

Options remain available for all Connecticut electricity customers, who are served by CLP and UI, to lower their electricity rates.  A large portion of customers remain on the two utilities generation service charge (GSC) which serves as a default rate for those customers who do not choose a competitive priced supplier.

Residential customers, in particular, are being presented options that will provide a clear and easy way to cut out some of their expenses.  Competitive electric providers are offering rates that are 10-15% less than current GSC default rates.  However, as of November 30, 2009, the state reports that only 12.9% of CLP customers and 18% of UI customers have selected alternative suppliers.

While the alternative providers are present to offer lower electric supply rates, CLP and UI continue to take care of the delivery (lines and wires) of the electricity as well as the billing.  Since the customer continues to receive a bill from the same company at the same time of month, and because the quality of the electricity is the same, the only difference that occurs when a competitive provider is chosen is the lower price.

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