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.