Variable Rates - Third Party Suppliers
Your Rights And Variable Pricing From Third Party Suppliers
The Board of Public Utilities has seen an increase in calls to its customer service hotline (1-800-624-0241) from residential and commercial ratepayers who have variable rate contracts with Third Party Supplier (TPS) for the electric supply portion of their energy bill. Recent invoices may reflect pricing that is considerably higher than previous months or seasons.
TPS variable rate contracts are subject to market conditions, in that retail prices fall and rise due to supply and demand principles. Periods of extreme weather, such as this unusually cold winter or prolonged heat waves, can cause substantial price fluctuations.
Customers have rights. To understand what you can and cannot do please refer to the terms and conditions of your agreement with the third party supplier.
Before changing from your current TPS to the Electrical Distribution Company or another third party supplier understand the process and potential costs.
- If you signed up online, you most likely clicked “Accept” to the terms of the agreement. Please visit the Supplier’s website and request a copy of your agreement if you don’t already have one.
- If you signed up by phone, there most likely was a recorded acceptance of the terms of the agreement. Please contact your TPS for a copy of your agreement and you may request a copy of the recording of the call. Listen to the recording to hear whether or not you were told the pricing is variable and that an early termination fee or penalty exists.
- Read your contract, cancellation may be subject to a cancellation fee or early termination penalty.
- Be aware that when switching suppliers it may take 1 - 2 months before the switch is complete and the new supplier’s charges appear on your monthly bill.