Types of Energy Contracts

When you are looking around at the wide variety of Connecticut electric rates on offer, what can you expect? We're going to take a closer look at the types of contracts you can get from the alternative electricity providers in CT.

First, let's look at some of the hard and fast rules. It's important to understand a couple of things. The Public Utilities Regulatory Authority (PURA) must approve all electric suppliers. However, there are no regulations when it comes to the price of electricity from competitive suppliers. Effectively, they can charge what they want for services and incentives.

There are some basic retail rules, though. Consumers can swap their electricity company once a month if they want to. And, new rates only take effect from the day of your next meter reading. Now let's look at the types of contract rates you can expect.

Enter a zip code for a list of contracts:

Variable rates

Variable rates allowed energy suppliers to change their terms and fees whenever they liked. However, electricity providers in CT are no longer allowed to offer variable rates due to consumer concerns. The changes occurred in October 2015. When looking for Connecticut electric rates, you will be choosing between two contract types. These will be fixed and fixed-tiered.

Fixed rates

Fixed price contracts must last for a minimum of four billing cycles. Providers are not allowed to change the rate until the end of that billing cycle period. They also must notify their customers as the fixed term rate comes to a close.

Fixed-tiered rates

With fixed-tiered contacts, you will pay a set amount for the first four billing cycles. Once that period comes to an end, you then pay the new rate for the next four billing cycles, or until the contract ends. Now, let's check out these CT energy rates in action.

As you can see, there can be a broad range of enrollment fees, ranging from zero to hundreds of dollars. While some of these charges might be worth it - exceptional customer service, for example - it's vital to do your research.