There are many competitive electric suppliers in the Connecticut marketplace, each offering their own unique products and services targeted toward different types of consumers.
It is very important that you choose an electric supplier wisely – one that works best and alignment with your specific energy needs.
As you shop for a new electricity supplier (and you absolutely should be), there are several questions you should be sure to ask them.
Products
Be sure to inquire about the different types of products the supplier offers. Some suppliers can offer some very sophisticated products and services depending on the type of customer, where and how they actually procure the power supply, and various other market factors. It is important that the supplier helps you choose the best product for your individual home or business.
Be sure to ask them:
- Do you offer a choice of energy sources (i.e. electricity, renewable, natural gas)?
- Do you offer other products or services, in addition to electric supply (i.e. energy audits, consulting services, etc.)?
Price
Suppliers’ retail price quotes can change often depending on various market factors that can impact the wholesale price of electricity. Do not be surprised if an electric price quote is not the same tomorrow, as it is today. A good supplier should be able to explain certain price risks and potential increases, honestly and objectively.
Be wary of suppliers who try to use overly sales-y “scare tactics” about potential price spikes, or try to pressure you to “lock-in now” because rates will sky-rocket if you don’t. While pricing can certainly fluctuate, devious suppliers have been known to inflate or over-estimate these potential fluctuations to incite fear or to close a quick sale. Make sure you are dealing with honest, intelligent, and friendly sales people who genuinely want to help you.
Make sure to understand:
- If your price will include sales tax.
- Whether or not you will incur extra charges if your usage goes significantly above or below your usual level of usage for a given period of time.
- If the price changes, when and how the supplier will notify you. Further, ask them if they will recommend the action(s) you should take if and when the price changes.
Additional questions to ask about price:
- What is your price per kWh today?
- Is the price fixed or variable? If variable, how does it vary? By time of use, monthly, by amount used, or some other method?
- Do you have dedicated access to real-time and future market pricing data?
- Is the price per kWh all-inclusive? (If not, ask what the other energy and generation related charges or fees related to the bill are, and the price of each. Be sure to ask and understand both the price per kWh and the total monthly estimate for your usage, and make sure the answers they give you are consistent.)
Finally, with regard to price, ask them what your potential monthly savings estimate would be on your rate. A good supplier should be able to conduct a thorough savings analysis for you. Be sure to have a recent copy of your bill handy, as they will need to know your average kW usage during the summer and winter months.
Note: Some suppliers may offer special rates or discounts for senior citizens, non-profit organizations, schools, churches, and other specialty customer types. Make sure you identify yourself or your business and ask about any discount offers or special rates you may be eligible to qualify for!
Contract
Many suppliers are also able to offer a variety of contract terms and conditions. Much like your cellular phone service provider, electric service companies can offer both long-term and short-term contracts depending on the customer type.
Ask to review the suppliers’ standard contract before agreeing to any offer on price. An honest supplier should be willing to share this with you pretty easily, and also be willing to go over it and answer any questions you might have. If they cannot, move on.
Be sure to know if the supplier is going to charge you any type of switching fee, exit fee, or termination fee if you leave them.
Do not let them “mask” this fee or “hide” it somewhere else in your service contract, by naming it something cute or confusing.
It should be spelled out, explicitly, and be easily identifiable in your contract.
Additional contract questions to ask:
- What are my choices on the length of the contract?
- What are the penalties if I want to get out of the contract before it expires?
- Do you do a credit check?
- How long is your price offer valid?
- If I accept your offer, how long will it take for service to begin?
VERY IMPORTANT!!!
Be sure to get very clear and explicit answers on the suppliers’ renewal terms! Some suppliers will automatically renew your contract at the same price and terms and conditions as when you first enrolled. Some suppliers will put you on a month-to-month market-based rate (which could be a much higher rate!). Some suppliers even charge a termination fee or an “exit fee” if you choose to switch to another supplier!
A good supplier will contact you months in advance of your expire date, and begin to recommend the best solution for you. A good supplier will want to keep you as their customer, and should be willing to do everything they can to keep your business, while ensuring that you save on future energy costs.
Billing
Billing can get complicated, sometimes, with certain suppliers. A good supplier should have a simple, easy-to-read, and easy-to-understand bill. They should be willing to talk about your bill, and answer your questions in a friendly and objective manner.
Key billing questions to ask:
- What billing options do you offer?
- Can I pay one consolidated bill for both my energy supply and the delivery service, or do I have to pay two separate bills to both my energy supplier and my distribution utility?
- Do you provide online account access? If so, what features are offered? (Can I print my bills, access my usage history, additional every savings tools, etc.).
Supplier
Last but not least, perhaps some of the most important questions to ask any electric supplier are ones that put them right on the spot. You should be able to think of your energy supplier as an objective partner, someone who can give you sound advice and suggestions tailored to your individual energy needs and budget.
Don’t be afraid to ask about the legitimacy of their business. Ask them who they are, who their officers are, where they’re located, how they started their business, why they started their business, etc. This will give you a good indication of the companies’ values and ethics and quickly give you a sense if the conversation is even worth continuing.
- Are you a licensed energy supplier in my state or province?
- Do you serve both residential and business customers, or just one customer type?
- The number of residential and business customers under contract.
- The number of years serving customers in their competitive market.
Don’t be afraid to ask tough questions like:
- What is your credit rating?
- What is your customer switching/turnover rate?
- What is your employee turnover rate?
- How is your business performing?
- How much experience do your officers have in the industry?
The last thing you want is to have a contract with a supplier experiencing problems maintaining a strong balance sheet. Or to be partnering with someone who really doesn’t know what they’re doing in the competitive marketplace. Will they be “here today, gone tomorrow?” Are they using unfair or devious sales and/or marketing techniques? Will they leave you high and dry if the market takes a turn for the worse?
There’s nothing wrong with asking questions. When you’re shopping for a competitive electric supplier, be sure to do a little homework on the company. There’s an old saying that goes – “You get what you pay for.” Sometimes, a low rate, may mean low quality or low service. Go with a good reputable company who truly understands the meaning of service, loyalty, and quality. Many suppliers can offer lower rates that under-cut high utility rates, but not all of them can deliver when it comes to great value-added service offerings, friendliness, and honesty.
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Have a wonderful Monday and a great start to your shopping week! 
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