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Consumer advocates press protections after evidence shoppers often pay more
Summary
Consumer groups and some lawmakers urged changes to Pennsylvania's retail electricity market to protect shoppers who roll from short fixed-price offers into higher variable rates, including a proposal to automatically return customers to default service absent affirmative consent.
Consumer protection and legal‑aid witnesses told the joint committee that the retail electricity market has harmed some shoppers and increased household energy insecurity.
Elizabeth Marks, executive director of the Pennsylvania Utility Law Project, said her organization’s litigation and outreach data show residential shopping customers have paid substantially more than utilities' default service prices in aggregate. "Across the 4 major electric utilities, residential shopping customers paid $2,200,000,000 more than the price to compare," she said, adding that vulnerable households have been driven to arrears and shutoffs. The Office of Consumer Advocate recommended requiring suppliers to return customers to utilities’ default service at the end of short fixed‑price contracts unless customers affirmatively choose to stay.
RESA, representing competitive suppliers, disputed the claim that retail choice is a primary driver of higher bills and cautioned that forced returns could shrink product options and harm consumers who prefer fixed long‑term contracts; Frank Kaliva cited PA Power Switch data showing potential savings for shoppers in particular months.
Lawmakers and witnesses discussed concrete safeguards the General Assembly could consider: standard notices and caps on variable-rate rollovers, bans on certain monthly fees or punitive early‑termination charges, restoring PUC authority to order refunds where suppliers act improperly, and expanded outreach and state assistance to help shoppers make informed choices.
The committee signaled intentions to consider proposals that preserve choice for consumers who benefit from it while increasing protections for those who are frequently harmed by short-term offers and rollovers.
