What Should Be in the Contract
What Should Be in the Contract |
What to Look for and Think About |
Company Name, License Number, Email, and Website |
Is there a Customer Service number where you can call in case you want to cancel, have questions, or want to speak with someone? |
Price Structure |
It does not matter what the agent says; you will be held to what is in the Contract. Check to see if it is a fixed or variable rate. Is the rate only for a few months and then it changes to something higher? Variable rates are very high risk. |
Cost of supplying the gas/electricity |
You will still need to pay distribution charges to your local utility in addition to supply charges to your retail supplier. Some suppliers also add on administrative fees which add to the overall cost. |
Statement Regarding Savings |
The supply price may not always provide a savings. |
Incentives like gift cards, credit cards, airline miles, etc. |
Does the incentive have real value for you in comparison with a higher rate for gas or electricity? |
Contract Start Date |
Describes when the Contract will begin and end. |
Contract Term/Length |
Does the Contract automatically renew? When it renews, will the supply rate change? |
Cancellation/Early Termination Fees |
Can you cancel at any time? Are there fees that you must pay if you cancel? If you cancel, you will go back to your local utility’s “Standard Offer” price. |
For families/households with more than 8 persons, for each additional person add: |
Provides a description of renewal terms. Will it renew at a different price? |
Make sure you review, understand, and compare all these Contract terms before you agree to sign with a supplier. A retail supplier must give you a completed Contract Summary form, like the one above. Only the utility customer (or a legal representative) can enter into a Contract with a supplier. No other person is authorized to sign for a customer.