CT Bans Variable-Rate Electricity Pricing

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Connecticut has passed a bill that would ban variable-rate electricity pricing for residential electricity customers, Energy Choice Matters reported last week. Under Senate Bill 573, retail providers would no longer be able to offer new variable-rate residential energy products starting in October. The bill would also require the Public Utilities Regulatory Authority to establish guidance on fixed-rate contract structures, and what happens when such contracts expire – including what constitutes a “just and reasonable” price increase in that type of situation. The Branford Seven writes that state Representative Lonnie Reed, Chair of the Energy and Technology Committee, alleged that a few bad actors are damaging the reputation of an otherwise reputable business with “bait and switch tactics.”

This should not dissuade more sophisticated commercial energy buyers from establishing variable-rate contracts with retail suppliers. It does, however, highlight the importance of understanding the details of each energy contract, especially with regard to what happens when the contract period concludes.

Environment + Energy Leader