TRENTON – The Senate Economic Growth Committee voted to release legislation sponsored by Senator Troy Singleton that would require the express verbal, electronic, or written consent of a residential customer for any material change to their third-party energy supply contract.

The bill, S-4166 is in response to third-party energy suppliers increasing the rates of their contracts without notice. The rates charged by these suppliers of electric generation or gas supply services are not regulated by the Board of Public Utilities and can vary widely. Many third-party suppliers offer contracts with a fixed price for a specified period, followed by variable pricing that can be significantly higher than the originally agreed-upon rate.

“Residents have been caught off-guard by substantial increases in their energy bills from third-party suppliers,” said Senator Singleton (Burlington). “These companies rely on the unfair practice of using attractive pricing to lure customers in, then changing their pricing model without any notice. Requiring expressed consent for energy contract changes will help protect ratepayers and save households from unexpected expenses.”

Under this legislation, any changes to the terms or duration of any third-party energy supply contract in New Jersey would require the customer's clear consent and must be recorded by the energy supplier.

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