(WTNH) — If you get your electricity though a third party retail electric supplier you might be paying too much.
Third party retail electric suppliers are companies that buy energy in the market and resell it to consumers. Senator Richard Blumenthal is calling for the Federal Trade Commission to investigate deceptive marketing and price gouging by these suppliers. So far this year customers have paid $23 million too much.
Eighty-six percent of Eversource customers and 77 percent of United Illuminating customers paid more than the standard service rate in August if they used a retail electric supplier.
“People probably got with contracts that looked like a good deal relative to standard offer and then when it drops we didn’t see a corresponding drop in supplier prices,” said Consumer Counsel Elin Katz.
The rate you pay for electricity is per kilowatt hour – that’s the unit of electricity. Experts say the best way to make sure you’re not overpaying is to check your bill. You’ll find who your supplier is and what your rate is on the lower left hand corner.
Energy is procured through a process overseen by the government to make sure it’s a reasonable, stable price. That’s the standard offer and there’s no profit built into it. It is usually higher in the first half of the year. Switching suppliers can cost you. You could be hit with a signup fee of up to $150 or a termination fee, which state statute limits to $50.
“If they’re offering you a low rate but with a big signup fee that should really set off alarm bells in your head,” said Katz. “You’ve got to make sure that it’s really going to be paying off over time.”
There’s no cap on the rate you pay. Experts say electricity is electricity, so there’s no reason to pay more for it. If you think you’re paying too much you can call your supplier to lower your bill or you can consider switching. That, however, can take about 30 days.
