He Feels Like It Was Robbery
Henu Bajaj, describes his electric bill delivered in his mail by Hudson Energy as a “robbery”.
He legitimately feels that Hudson Energy robbed him and would have been better off just staying with PSEG.
He said the energy agreement with Hudson Energy was not a fixed agreement but described it as “regular prices”.
Henu, went on to explain in paraphrase, “my bill was in the $600’s with PSEG and would have been about that amount but with Hudson Energy it was over $1,100.
He Doesn’t Think Deregulation Helped
Many home owners and business owners have expressed similar complaints after moving away from the prior state regulated electric utility to other energy providers.
Someone comes in to a new electric utility area where competition is opened up and says you will save lots of money just by switching electric companies.
It’s hard to resist the prospect of saving money just by choosing someone cheaper. The new energy company promises savings so many go with the new electric provider trusting they are telling the truth.
Easy to Shift Blame and Blame Him For Not Renewing
It sounds like what happened to Henu is not renewing a fixed energy contract and so it rolled over to a variable price.
When the state was regulated the electricity rate would always be on a fixed rate so there was no renewing. A business owner did not need to call and bother with renewing an energy contract which can be nice.
The issue is that many people find themselves in this exact scenario where the rate they are paying goes up 100% or more because of missing the chance to renew back into a fixed electric rate agreement.
If He Never Switched a Renewal Would Not Have Been Needed
As you can see with Henu, he feels he as a business owner would be better off being with an electric company that never needed to renew his contract. The price stays fixed for years and years without needing to reach out to his energy company is what it sounds like he needs.
Effectively, electricity deregulation causes some people to feel like energy competition is robbery rather than being a good thing.
I understand where this business owner lost confidence in the process of electric choice. After losing so much money it definitely feels like robbery.
It’s true that if the state didn’t deregulate this high electric bill would have never happened.
What needs to happen in cases like this is effective communication about renewing the energy contract in time and exactly what the price difference will look like if you don’t.
There are too many people that are just not informed about the price volatility of electric service. To be burnt with sky high energy prices by a lack of knowledge and help from your energy provider can be avoided.
Donny has been writing about the deregulated energy markets since early 2007. His knowledge has helped consumers lower their electricity cost.