Supply Companies Offering Variable Rates Again Called Into Question

A Connecticut-based law firm, Izard Nobel LLP, has filed legal cases against the multiple electricity supply companies. The law firm takes issue with how North American Power & Gas, Direct Energy Services, Viridian Energy and Discount Power market their variable rate products.

According to the Middletown Press Newspaper, the firm is accusing the supply companies of “engaging in price gouging as well as unfair and deceptive business practices.”

At Provider Power (Provider Power Mass, ENH Power, and Electricity Maine), we don’t believe that variable rate plans are in the best interest of the consumers.  While this might be a viable option in some regions of the country, here in the Northeast, where weather is unpredictable and natural gas prices fluctuate greatly, real time energy costs in the winter and mid summer can be exorbitant.

We continue to applaud the Maine Office of the Public Advocate and the Connecticut  Public Utilities Regulatory Authority for previously warning consumers about electricity supply plans that include variable rates.

In some states, including Connecticut, due to variable rate offerings, consumers have seen their power bill go up by 300%. This tends to happen during periods of peak demand, such as colder winter months or hotter summer months. As demand for natural gas, the primary source of electricity production, continues to fluctuate, electricity prices will continue to rise.

At Provider Power we do things differently. We purchase all of our customers’ power for the duration of their contract, at the time of enrollment, at a fixed price.  As a result, customer’s are not affected by pricing variations.

Provider Power’s innovate business model led Inc. Magazine to recognizing Provider Power as one of the nation’s fastest growing companies.