Starion Energy uses state market conditions to determine energy rates based on fixed rate or variable rate customer contracts, reports Starion Energy. Electric bills for both types of contract are subject to sharp price increases that don't reflect the current market, warns the Attorney General of the State of Connecticut.
Because of deregulation of the energy market, licensed private electric suppliers market alternative rate plans other than those that the standard public utilities offer, explains Energize Connecticut. State regulatory agencies set standard rates. For instance, in Connecticut, the Public Utilities Regulatory Authority sets standard electric rates approximately 45 days in advance. However, private electric suppliers often do not follow these rates, states the Attorney General of the State of Connecticut. Sometimes electric suppliers such as Starion Energy charge more than double the standard rate.
Private electric suppliers such as Starion Energy may automatically switch consumers who sign contracts for electric supply at fixed rates to variable rate contracts at the end of the fixed rate term, according to the Attorney General of the State of Connecticut. Additionally, those who sign contracts for variable electric rates receive low rates as an initial offer but then find that their electricity prices spike to a much higher rate. The Attorney General urges consumers who are contemplating signing contracts for electric service to be aware of possible rate changes, termination fees and price caps.