News for CT Electric Plans
On July 7, 2021, Governor Lamont signed HB 6526 into law. This law changes Early Termination Fees (ETFs), variable rates, and other rules. As a result, the state’s energy customers now face clearer choices for their CT electric plans.
Benefits of ETFs Ban
Before HB 6526, fixed rate contracts often came with expensive ETF charges. Customers in longer term electricity plans who wanted to switch plans usually face much higher ETF charges. As a result, customers didn’t switch and just went along paying these higher rates for the term of their contract. Banning ETFs now frees customers to choose their supplier even more.
Variable Rate Update
Another part of in HB 6526 eliminated all remaining variable rate contracts. Strangely, the state banned variable rate plans in 2015. But, about 25,000 customers stayed on variable rate contracts since. Though HB 6526 eliminates these last few cases, some suppliers argue the law is limits choice. Energy shoppers now only have two options of energy contracts rather than three. So, customers can only choose longer, fixed rate terms or accept their utility’s default services.
Shop for Best Electric Rates
Another part in the law requires plans to show estimated monthly bills. This means customers get the information they need to compare electric plan price versus the utility’s price to compare (PTC).
To see how this might play out, check out our recent article on New Haven 12-month plans. In the article, we compare rates to the EIA average monthly bill to estimate monthly charges.
Requirements for Third-Party Marketers
To protect consumer rights, the law has now requires third-party sales agents hired by suppliers to train them. This way, the supplier is held responsible if an agent violates PURA sales regulations.
How HB 6526 Affects CT Electric Choice
It’s clear that HB 6526 provides a lot of positive benefits to CT customers. Governor Lamont signed the bill to make energy choice more fair for CT energy customers. For most customers, the biggest part is the removal of ETFs. Because of this ban, customers are free to switch or cancel at no extra cost. Time will tell how the entire law affects CT electric rates and bills.
Learn more about retail suppliers, saving money and energy, and comparing rates and plans at https://www.ctenergyratings.com.