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Connecticut’s electric marketplace fraught with unscrupulous marketing practices

By Lon Seidman

Retail electricity suppliers aggressively market low fixed rates to Connecticut residents, but many consumers are finding those initial savings give way to expensive variable rates that have more than doubled their bills.

John Erlingheuser of the Connecticut AARP says that seniors in particular are being targeted by telephone, direct mail, and even door-to-door pitches from marketing companies hired by retail electricity firms.

He says the marketing activity has become more aggressive now that the “standard offer” rate negotiated by the state is more competitive with what many of these retail suppliers offer. Some companies are offering gimmicks like restaurant points and cash rebates to lure customers into fixed length contracts that come with early termination penalties. And for some there may never be any real savings.

“The market is not good enough for anyone with a small amount of usage,” Erlingheuser said.

See the complete story, video at CT Tech Junkie.

Comments

4 responses to “Connecticut’s electric marketplace fraught with unscrupulous marketing practices”

  1. spanner

    Doesn’t this leave us questions on why the power plant in Norwalk can’t be a plus to those who have to rely on outside resouces?Competition had always kept the price down on some things why not locally created power?It worked for NY until another plant was built why not Norwalk?

  2. Debora

    Norwalk already has municipal power in two of the taxing districts.

  3. spanner

    Thank you Debora for pointing that out,there were state reps and officials in Norwalk also a few years back talking about buying bulk power,I think some of them are still around.There was even taxpayers money spent for studies I simply didn’t know if any of those gimmicks back then by our politicians still existed today.

    The Norwalk Public Power Authority Committee, when formed, was assigned to address five issues: purchasing bulk power for residents, businesses and publicly owned facilities; control or acquisition of the distribution network, from substation to the consumer; power generation, including the possibility of acquiring the Manresa Island Power Plant; linking the 2nd and 3rd Taxing districts with the proposed public power authority; and linking with the Long Island Power Authority on cross-Sound electricity distribution.

    The way the city subs out things didn’t know if this would be another venture to save us taxpayers some money.

  4. dawn

    this month my bill doubled. they said talk to CL and P.
    I asked if they were supposed to notify me that my fixed rate was up and they said no they are not required to do so i was told a year ago.
    Thieves.

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