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Another Consumer Advocate Urges Retail Supply Customers to Review Contracts, Pricing; Warns on Variable Rates

October 8, 2014

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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The Delaware Public Advocate urged all customers who are currently receiving their energy supply from suppliers other than Delmarva Power & Light Company, or who are considering switching from Delmarva to a third party supplier (TPS), "to review their contracts carefully to make certain that they understand all of its terms and conditions – especially if the contract is a variable rate contract (a contract where the per-kilowatt hour price you pay can change from month to month with no notice to you)."

"This past winter, many TPS customers were surprised by exceptionally high bills - either because they did not realize they had agreed to a variable rate contract, or their contract allowed them to be moved to a variable rate contract without their express approval, or the variable rate contract they signed had no price protections," the Public Advocate said.

"Moreover, when customers tried to cancel their TPS contracts and return to SOS, it sometimes took as long as two or three billing cycles to be returned to SOS," the Public Advocate said

"If you don't understand something in your contract, call your TPS and ask questions. This is especially important if you are on a variable rate contract, or if you can be moved to a variable rate contract at the end of your initial contract term," the Public Advocate said

"If you are currently a SOS customer and you are contacted by a TPS, either on the phone or in person, do not feel like you need to make an immediate decision. Take the time to read and understand the contract you are offered. Make sure that you know exactly what the costs are (including early termination fees or fixed monthly fees), and keep a close eye on the dates in the contract," the Public Advocate said.

"A TPS may offer an appealing introductory fixed price that changes to a variable rate after a period of time," said David Bonar, Delaware's Public Advocate. "If you have questions, ask before you sign."

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