Introduction
Connecticut businesses pay some of the highest electricity rates in the country. In 2024 the average commercial electricity rate in the state was about 19.43 ¢ per kilowatt‑hour, significantly higher than the national average for businesses. With such steep prices, reducing your company’s power costs can have a real impact on your bottom line.
Connecticut’s deregulated electricity market
Since the late 1990s Connecticut has operated under the Energy Choice program, a form of electricity market deregulation. Under this system, the supply and delivery portions of your electric bill are separated. Your local utility—Eversource or United Illuminating—still maintains the poles and wires and delivers the power to your business, but you have the freedom to choose who supplies your electricity. Standard service supply rates are set twice a year, but many third‑party suppliers offer more competitive plans that can help you save money.
Why comparing suppliers matters
The supply portion of your bill is the only part you can control. Standard service generation rates for 2025 are roughly 11.19 ¢/kWh for Eversource customers and 13.57 ¢/kWh for United Illuminating customers, but retail suppliers often offer rates below these benchmarks. Because suppliers purchase power on the wholesale market differently than utilities, businesses that switch can often reduce supply costs by 5–25 %. Choosing the right supplier helps you lock in a low fixed rate per kWh and protects your budget from price spikes.
Types of plans and contract considerations
Third‑party suppliers offer a variety of plans. Fixed‑rate plans lock in a single per‑kWh price for the term of the contract, providing stability and predictable budgeting. Indexed or variable plans track wholesale market prices and may offer savings during low‑demand periods, while block and index plans combine fixed and variable components to suit large or seasonal loads. Many suppliers also offer renewable energy plans that support clean power generation. When shopping for a commercial electricity plan, pay attention to contract length, early termination fees, and any demand charges that might apply to high‑usage customers.
Tips for finding the best rate
- Understand your usage. Analyze your company’s monthly and seasonal electricity consumption so you can estimate savings and choose an appropriate plan length.
- Compare multiple offers. Use EnergizeCT.com or other comparison sites to review per‑kWh rates, contract terms and renewable options from different suppliers.
- Ask about additional services. Some suppliers provide demand response, energy‑efficiency programs or renewable energy certificates that can further reduce costs.
- Read the electricity facts label. Before signing, check for hidden fees or conditions and confirm that the quoted rate applies to your full usage.