Please ensure Javascript is enabled for purposes of website accessibility Munroe introduces consumer protection bill ensuring adequate notice when a fixed-rate energy contract ends

Munroe introduces consumer protection bill ensuring adequate notice when a fixed-rate energy contract ends

Legislation would make current Pa. Public Utility Commission regulations state law

WARMINSTER, Jan. 30 – State Rep. Brian Munroe, D-Bucks, is pushing to help residents avoid surprise energy price hikes by making sure that they know when a fixed-rate contract ends.

He introduced H.B. 2183 today to lock current Pennsylvania Public Utility Commission rules into law and require clearer, earlier warnings when energy bills are about to change.

“Having a fixed-rate energy bill relieves a lot of stress on working families because it makes a household’s monthly energy costs predictable,” Munroe said. “With the cost of energy continuing to rise across Pennsylvania, it is imperative that families know what to expect to pay at the end of every month.”

The PUC currently requires energy providers to twice notify fixed-rate consumers that their rate is soon expiring. If a consumer doesn’t renew their fixed-rate contract by its expiration, they’re forced onto a variable-rate contract that will adjust to energy market conditions.

“For a family on a strict monthly budget, a variable-rate contract poses a significant problem,” Munroe said. “Their bill is going to fluctuate month to month based on the energy market, a system that is entirely beyond their individual control. And then they’re stuck paying potentially much higher rates some months, even if they’re using the same amount of energy that they always use.”

According to Munroe, families do have pros and cons to weigh when choosing a fixed-rate or variable-rate contract with their energy provider. For example, if market prices drop, consumers on a variable-rate contract would see their bills lower, while consumers on a fixed-rate contract would pay their contract rate, even if it’s higher.

“Consumers should always consider their individual financial needs when they’re choosing an energy provider and contract type,” Munroe said. “I want to be sure that those who choose a fixed-rate option have as much notice as possible about a contract expiration so that they can continue to make that choice for their household.”

Statewide, Pennsylvania has seen energy prices surge over the past several years – outpacing inflation rates – and at the same time, a significant increase in demand.