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Draft Would Allow Suppliers To Offer Lower Rate Than "Next Month's Rate" Listed on Bills

July 27, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

A Connecticut PURA draft would allow electric suppliers to offer a different rate from the rate listed on the customer's bill as the next month's supplier rate, but only where the rate is lower than the previously listed rate.

Statute requires the customer's supply rate for the next month be listed on bills. During the course of implementation stakeholders questioned whether suppliers could deviate from the previously listed next month's rate if the customer agreed to a change.

PURA's draft would allow for a change in the next month's rate if the new rate is lower than the listed rate.

"The Legislature directed the EDCs to redesign the first page of residential electric bills to facilitate customer ability to compare pricing policies and charges among electric suppliers. Central to a robust competitive market is a customer’s ability to negotiate rates with all market participants, including the current supplier. Therefore, once the Next Rate has been identified customers must be allowed to negotiate a lower rate with their current supplier while comparing all other supply options. If the customer negotiates a change in rate with the current supplier that rate should be assessed as soon as possible ... It would be unreasonable to require the customer to first pay for service at a higher rate and then accept a refund instead of simply billing for service at the adjusted/negotiated rate. In addition, allowing suppliers to modify the Next Rate will provide consistent enrollment and price change standards whether the customer is switching from supplier to supplier, supplier to standard offer, or product to product. Thus, suppliers must be allowed to lower the Next Rate if a residential customer affirmatively elects a change and must timely process the change to assure the customer is properly billed during the [next consumption period]. All current customer enrollment/confirmation standards, such as memorializing any change agreed to by the customer apply," the draft states

"Therefore, the Authority concludes that suppliers should be allowed to reduce the Next Rate after that rate has appeared in the Summary Information," the draft states

The draft stresses that, "if the Next Rate that was displayed was incorrect or did not conform with a rate that the customer affirmatively consented to receiving, suppliers must correct these situations directly with the customer and should not rely on the EDC billing system to fix these mistakes. The EDCs in turn must accommodate these standards within their systems."

"The Authority shares the concerns raised by the OCC and AG regarding potential abuses surrounding the Next Rate policy and encourages suppliers to establish strict standards and policies to avoid potential errors and customer complaints. For example, suppliers should adopt the practice of offering customers the best rate when posting the Next Rate as suggested by the OCC and AG and must assure accuracy when providing the Next Rate to the EDCs. Customers must be confident that the Next Rate is timely, accurate and credible. The Authority hereby notifies suppliers that it will not tolerate any abuse of this policy and will take immediate and decisive regulatory action against any supplier who violates the spirit and intent of the statutory provision and this decision," the draft states

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