ESCO for natural gas - bad idea?

I’ve been trying to find ways to save money during the pandemic. We have gas heat and have been using an ESCO for many years. I think the ESCO may charge higher rates for the gas supply than National Grid but it is hard to figure this out. I tried calling National Grid. The first rep hung up on me and the second rep couldn’t tell me anything specific but she said she doesn’t know why anyone uses an ESCO. My latest bill was quite high (of course it’s been really cold lately and we have a 4 story townhouse (tenants’ heat included in our bill). It was $380 for service between Jan 6 and Feb 6. Of this, $202 is for delivery and $167 is the ESCO’s charge for supply (not including sales tax). The ESCO charge was $.53 per therm. Would anyone with National Grid as their supplier be willing to tell me how much they’re paying per therm recently? Previous posts about ESCOs on the forum suggest they’re a bad idea but without giving any specifics. Rates seem to always fluctuate so it’s hard to find accurate information for comparison. Thanks very much!!

brokelyn

in Heating and Cooling 4 years and 2 months ago

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slimc | 4 years and 2 months ago

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It’s a rip off. I recently checked my National Grid bill to discover that I paid more to the ESCO than for the gas. I cancelled my esco a few years ago but was suspiciously reenlisted. I called to cancel last month. I wouldn’t get into it if I were you.

brokelyn | 4 years and 2 months ago

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Good point, Urbandad! I think that’s exactly what happened to me.

hkapstein | 4 years and 2 months ago

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I don’t recomend the ESCOs. I observed there is an incentive to raise rates after customers have signed on. The National Grid or Coned rate is usually competitive, but if you sign up for an ESCO, would you notice if their rate became expensive in three years? Or would you, like most people, move on and not think about this anymore.

brokelyn | 4 years and 2 months ago

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Thanks for this! Yes, these bills are complicated and hard to read. Your gas supply charge is indeed cheaper – $.41/therm where mine is $.53/therm. I’m thinking I should quit the ESCO and have National Grid as my supply provider.

shahnandersen

in Heating and Cooling 4 years and 2 months ago

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It’s not so simple, but here’s the whole bill:

Minimum Charge $22.53
(First 3.0 therms or less)
Next 47.0 @ $1.1949 56.16
Next 347.0 @ $.4234 146.92

Delivery Rate Adj
@ .00708 /therm stment $2.81

System Benefits Charge
@ .01680 /therm $6.67
MTA Surcharge $.40

GAS DELIVERY CHARGE $235.49

GAS SUPPLY CHARGE
@ .41070 /therm $163.05
MTA Surcharge $.28
4.5000 % Sales Tax 7.35

Supply Subtotal $170.68

4.5000 % Sales Tax on Gas Delivery 10.60

Bill. Charge (inc. taxes & surchg) $1.55

TOTAL CURRENT CHARGES $418.32

brokelyn | 4 years and 2 months ago

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@bobjbkln It seems like you are paying less per therm, since your usage is higher (mine is 316 therms) but your price is not that much higher. Do you happen to have the price per therm indicated on your bill that you could share with me? Thanks!

RobertGMarvin

in Heating and Cooling 4 years and 2 months ago

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FWIW someone on our neighborhood FB group cited this Village Voice article about ESCOs in response to a similar question a few days ago:

https://www.villagevoice.com/2017/06/06/nys-parasitic-private-energy-scammers-are-digging-in-their-heels/

JohnHancock | 4 years and 2 months ago

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It won’t save money but I use level billing where the average monthly for the year is charged. Less of a spike in payment

shahnandersen

in Heating and Cooling 4 years and 2 months ago

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In the ball park. Ours 4 story 2 family house including hydronic heat, hot water, two gas ranges and two dryers, was $418 for 397 therms.