Only 18 states are deregulated – where you have the power to choose who provides your energy – and Connecticut is one of them.
If you live in Connecticut, you’ve probably noticed that your electricity costs have steadily increased over the past few years. According to Energy Information AdministrationConstitution State residents face one of the highest average residential electricity prices in the nation, about 33.23 cents per kilowatt hour in March 2023.
While many Americans are already feeling the financial strain caused by high rates of inflation and the rising cost of living, high electricity bills may add to the current financial burden. Luckily for Nutmeggers, Connecticut works like a deregulated energy market, offering potential opportunities for relief. Individuals can switch to a lower cost electricity supplier by doing a simple search online. Here’s everything you need to know to help you make an informed decision about switching Connecticut’s electricity provider.
Deregulation in Connecticut: What does it mean?
Deregulation in Connecticut completely transformed the state’s electricity market in most parts of the state. When deregulation applies, it allows consumers to have complete control and flexibility choose your electricity supplier.
“Connecticut has embraced energy deregulation since 1998 and has a set of policies that set it apart from other states,” said Christine Ciavardini, customer relationship manager at MD Energy Advisors, a Baltimore-based energy consulting firm serving energy industry clients nationwide.
However, there are still subsections where deregulation and vendor choice are not an option. “For example, some parts of the state operate as cooperative public corporations, where consumers cannot buy electricity from other providers,” Ciavardini said. “The remaining parts of the state allow consumers to choose their energy provider and offer incentives and rebates to consumers who switch from conventional energy sources to cleaner, more sustainable energy alternatives.”
In Connecticut, the state requires vendors to adhere to specific regulations that prioritize consumer protection. These regulations include requirements for suppliers to transparently disclose terms and conditions, provide standardized billing, and offer consumers a diverse range of energy options.
Connecticut Utilities or Choosing an Electricity Supplier
In Connecticut, it’s important to note that while you can’t change utility companies, until you’re in a cooperative utility area (cooperative public corporation), you can choose your utility provider. electricity or natural gas. Connecticut’s utility companies are:
Both companies are responsible for the delivery and maintenance of the state’s energy infrastructure. However, state energy deregulation gives residential and commercial customers the flexibility to choose a supplier or retailer that offers competitive rates or uses various types of energy fuels.
When choosing an energy supplier or retailer, you can compare companies based on rate plans, contract terms, renewable energy options, and customer service. Here is a list of some of the electricity providers in connecticut:
What types of electrical plans are offered in Connecticut?
“Connecticut offers two types of power plans for residential customers: a fixed rate and a variable or indexed rate,” Ciavardini said. “A fixed price provides budget certainty, without risk, because consumers lock in their rate and won’t have to think about it until the end of their contract. In contrast, a variable or indexed rate plan allows consumers to take advantage of market and potentially save money if the wholesale market price drops.”
How do I find the best electricity rates in Connecticut?
“When comparing providers, residential customers typically focus on price per kilowatt-hour and key terms and conditions,” Ciavardini said. “Other considerations include payment terms and ensuring that no surprise costs can inflate the originally agreed fixed price.”
Connecticut residential customers can visit the state official’s website Utilities Regulatory Authority to find information on how to compare energy supplier rates. According to Ciavardini, it’s worth it for consumers to explore their options, assess market conditions and understand their risk tolerance.
Consumers should also study the terms and conditions of their contracts so that they don’t have factors like automatic rollover triggers when the original contract expires or early termination fees.
Ciavardini also notes that market volatility can affect electricity supply contract prices. This variability can bring benefits when market rates fall, but it also carries risks when prices rise. Therefore, consumers need to recognize their level of risk tolerance and choose products that fall within their comfort zone. In addition, consumers can convert variable price or indexed contracts to fixed price contracts in the medium term if the market stabilizes.