Broker: Customers Were Paying 27% Higher Retail Supplier Rates Before Joining Price Alert Service
In a blog post in which the company says it is "taking a stand", Arcadia Power, which as previously reported recently launched a price alert system which monitors residential retail supplier offers in states with energy choice and automatically switches residential customers to plans which provide savings, reports that customers joining the price alert service were paying significantly higher retail supplier rates before enrolling with Arcadia Power
Arcadia Power's post was prompted by the release of a study by the Massachusetts Attorney General which said that residential customers on competitive supply paid $176 million more than default service over 24 months
Arcadia Power said concerning its new Price Alert customers that, under contracts customers had entered prior to joining the program, "We discovered that our members in Ohio, Illinois, D.C., and Maryland on retail supply contracts were, on average, paying a 27 percent higher rate than they could have been."
Arcadia said that additional findings included:
• Some customers were paying over 50 percent higher retail supply rates.
• Arcadia Power members in the same states who were on standard offer services were also paying higher rates, about 4 percent higher than what Arcadia was able to find them.
When such customers enrolled with Arcadia Power's Price Alert program, "We quickly switched all of these members over to new, lower fixed-rate plans and they will start to see savings immediately. Even better, they don’t have to worry about their fixed-rate plan switching to a variable rate one without them noticing—a common tactic of most retail suppliers who offer a low teaser rate, which they hike up once the customer stops paying attention. Our platform will continue to monitor their local energy markets to make sure they stay on lower fixed-rate plans."
Arcadia Power said that this result shows that its Price Alert program, and similar innovative technologies, can unlock for residential customers the savings from the competitive market that C&I customers currently enjoy
"Shutting down competitive energy markets isn’t the solution, innovation is," Arcadia Power said