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Experts: Consumers are paying more for power in competitive supplier market

HARTFORD, Conn. – Connecticut residents who purchase their electricity from competitive suppliers pay more than their counterparts who purchase their electricity from Connecticut Light & Power or United Illuminating. That’s according to the findings of two experts hired by the Office of Consumer Counsel.

Susan Baldwin, an independent consultant, and Helen Golding, former general counsel at the Massachusetts Department of Public Utilities, studied the rates being offered in Connecticut and shared their findings with state regulators this week.

They found in CL&P’s territory that about 13 percent of residents using competitive supplies are paying less than the “standard offer,” about six customers — not 6 percent — are paying the same amount, and 87 percent are paying more than the standard offer.

In UI’s territory, about 30 percent paid less and 70 percent paid more than the standard offer.

“The fact that the vast majority of Suppliers’ residential customers throughout the state pay more than if they purchased the Standard Offer suggests that the market is not functioning properly as it is presently structured and regulated,” Baldwin and Golding concluded.

See the complete story at CT News Junkie.

Comments

2 responses to “Experts: Consumers are paying more for power in competitive supplier market”

  1. Casey Smith

    At one of my former jobs, they had a third party energy supplier. It was nuts. One month the bill would be over $150, the next month it would be .97¢, and then the third month, we’d get a bill for $300 because they claimed we hadn’t paid. So we’d call with the check numbers and dates. Then we would be told that WE had either underpaid or overpaid. It wasn’t worth the hassle and the aggravation.

  2. John Levin

    Well, when you get four calls each week at home offering to lower your electric rates, you know that someone is making very good margins on electricity sales. It is such a high margin business, that all of their resources are plowed into customer acquisition. Sure looks like the regulators flubbed this one. Anyone surprised?

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