Independent energy suppliers in New Jersey have been ordered to stop passing on higher costs to customers. The ruling was passed down by the New Jersey Board of Utilities.
According to NJSpotlight.com, the board ordered third-party suppliers to halt the practice and refund customers, which is “a step that could run into tens of millions of dollars.”
The Retail Energy Supply Association is contesting the order. Third-party suppliers counter that New Jersey’s new energy law includes a provision recognizing the added solar purchase requirements reflect a change in law, allowing price increases to pass on the obligations to existing customer contracts.
According to Robert Gibbs, director of corporate and regulatory affairs for Direct Energy, one of the largest retail energy suppliers in the state, the price increases across all the energy suppliers could amount to as much as $70 million or more. The issue involves only customers who have switched from their incumbent electric utility to third-party suppliers with fixed-price contracts.
In May 2018, New Jersey Governor Phil Murphy signed several legislative initiatives to establish New Jersey’s leadership in the clean energy economy. He also signed an executive order directing the development of an updated Energy Master Plan (EMP) for the state to achieve 100% clean energy by 2050.
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