CUB: Alternative Electric Suppliers Cut Costs
By Amanda Vinicky
Illinois residents saved up to 218 million dollars on their electric bills last year thanks to competition in the market. However, that is expected to shift this summer, and a consumer watchdog group is voicing its early concerns.
For a long time, Illinois residents did not have any choice about where their electricity came from. It was supplied by either Commonwealth Edison, or Ameren. Now residents have a few dozen options.
A new report from the Citizens Utility Board, or CUB, said since 2010, 1.7 million households switched suppliers, and they saved a lot of money doing it.
But in June, ComEd and Ameren will be freed from long-term contracts that locked in higher rates.
CUB's Jim Chilsen said that means alternative suppliers' price advantage will disappear.
"It's going to be really important that as this time nears, that people just be aware," Chilsen said. "It could be very well be possible that some competing suppliers get very desperate, and we see an uptick in misleading marketing."
Chilsen said CUB's concerned competing suppliers may try to grab new customers by offering low introductory rates, only for those rates to skyrocket later. He said other companies are charging early termination fees.
Chilsen cautions consumers to do their research. He said if alternative suppliers want to succeed, they need to get creative - like with programs such as real-time pricing for electricity