If you run a business in a deregulated energy market, you may have faced issues with third-party energy suppliers. Problems with energy suppliers are common in the retail energy sector. Many businesses or building managers experience billing errors, confusing contracts, or poor customer service. The good news is that a reliable energy broker can help. They can reduce risks and solve issues with suppliers. This article explains the most common energy supplier problems and how to handle them effectively.
Most Common Energy Supplier Issues
Whether you are a business or a home customer, you can face similar problems with energy suppliers. These issues affect both commercial and residential users. Here is a list of the most common energy supplier problems, along with explanations of each.
Fixed-Rate Terms
Most fixed-rate electricity plans cover all major costs, such as energy, transmission, and capacity. However, some contracts only fix the energy portion of the rate. Other charges, like transmission and capacity, may still vary and be passed through to the customer at market rates. This can make the plan seem fixed while other costs fluctuate.
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Early Termination Fees
Many retail energy contracts include cancellation clauses. If you end the contract before it expires, the supplier can charge an early termination fee. These fees can be large and cause unexpected costs. Customers often face this problem when they switch suppliers without fully understanding their current contract.
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Missed Enrollment
When you sign a retail energy contract, it usually includes a start date, an end date, and a fixed-rate term. If the energy supplier fails to enroll your account on the correct meter read date, you could face higher rates. These extra charges may come from your local utility company or your previous energy supplier.
Dual Billing
Dual billing is not always a problem with the energy supplier, but it can confuse customers. In this setup, you get two bills: one from the utility company for delivery charges and another from the energy supplier for supply charges. Some customers find this arrangement complicated and hard to understand.
Auto-Renewals
Some energy supply contracts include auto-renewal clauses. This means the contract automatically starts a new fixed term if you do not cancel it in writing. Some agreements also require cancellation within a specific time frame. If you miss this window, the contract will renew, often without notice.
Rate Change
Although rare, some energy suppliers have raised fixed rates in the middle of a contract. This is usually a breach of contract. However, some suppliers claim that certain vague contract terms allow them to make these changes. This can lead to unexpectedly higher bills for customers.
Pass-Through Charges
Some energy suppliers include clauses in their contracts that allow them to pass extra costs to the customer. If you are unaware of this, you might see unexpected charges on your utility bills. These pass-through costs can increase your overall energy expenses without warning.
Slamming or Unauthorized Switches
“Slamming” happens when an energy supplier enrolls you without your permission. This means your account is switched without your consent. Slamming is common and usually results from energy fraud or scams. It can lead to unexpected charges and service issues.
How Your Broker Can Help You With Energy Supplier Issues
If you used a broker to sign up with a retail energy supplier, they can help solve many supplier problems. Experienced energy brokers know how to handle issues like auto-renewals, rate changes, or billing errors. Established brokers often have strong relationships with suppliers and can negotiate on your behalf. For example, if your contract was automatically renewed without your consent, a good broker can help you cancel it without paying early termination fees.
Brokers also provide guidance when choosing an energy supplier in a deregulated market. They understand the details of energy contracts and can help you navigate complex terms and conditions. With a broker’s help, you can avoid problems and make better decisions about your energy supply.
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Need Help Handling an Energy Issue?
If you are a commercial, municipal, or industrial customer in a deregulated state, we can help. Our team of energy deregulation experts has over a decade of experience working with the nation’s top energy suppliers. We hold energy broker licenses in all deregulated energy states.
Frequently Asked Questions
What Are The Most Common Problems With Energy Suppliers?
The most frequent issues include missed enrollment, dual billing, early termination fees, pass-through charges, rate changes, auto-renewals, and unauthorized account switches (slamming). These problems can affect both commercial and residential customers.
Are There Risks When Signing A Fixed-Rate Energy Contract?
Some fixed-rate contracts only lock in the energy portion, while transmission and capacity charges may vary. Review your contract carefully and consult a broker to understand which costs are fixed and which can change.
How Can I Avoid Being Charged Unexpected Fees By My Energy Supplier?
Carefully review your contract for clauses like pass-through charges, partial fixed-rate terms, and auto-renewal policies. Working with a licensed energy broker can also help you avoid unexpected fees.
What Should I Do If My Energy Supplier Switched My Account Without My Consent?
This is known as “slamming.” Contact your energy broker or supplier immediately to reverse the switch. You may also report the issue to your state’s public utility commission to prevent fraud.
Can An Energy Broker Help Resolve Billing Or Contract Issues?
Yes. Experienced brokers have relationships with energy suppliers and can negotiate on your behalf. They can help with auto-renewals, rate disputes, and other contract-related problems.