Connecticut businesses operate in one of the most expensive electricity markets in the country. The average commercial electricity rate in the state is about 23.34¢ per kilowatt‑hour, nearly twice the national average, so even small reductions in per‑kWh costs can have a big impact on your bottom line. Fortunately, Connecticut’s electricity market has been deregulated for decades. While Eversource and United Illuminating manage the poles and wires, they do not profit from supplying the energy itself. That means your business can shop for competitive suppliers, lock in a low fixed rate and still receive reliable delivery from the utility.
Eversource: The State’s Largest Utility
Eversource serves roughly 1.3 million electric customers across most of Connecticut, including major cities such as Hartford, Stamford, Waterbury, New London and Norwich. The company maintains poles, wires and meters and provides a default “standard service” supply rate for businesses that do not choose a competitive supplier. As of January 2025, Eversource’s Generation Service Charge is about 11.19¢ per kWh for residential Rate 1 customers. Business customers on Eversource’s standard rate may pay a similar supply cost per kilowatt-hour, although actual bills depend on usage patterns and demand charges.
Eversource does not earn a profit on the electricity supply portion of your bill. You can remain on the utility’s default supply or shop for a third‑party provider offering a lower fixed rate or custom contract. Eversource will still deliver power, maintain the grid and provide customer service regardless of which supplier you choose.
United Illuminating: Serving Connecticut’s Coastal Cities
United Illuminating (UI) provides electric distribution service to the greater Bridgeport, Fairfield and New Haven areas along the state’s southwestern shoreline. UI’s territory includes cities such as Bridgeport, Fairfield, New Haven, Stratford and surrounding towns. Like Eversource, the company handles delivery and billing but does not profit from energy supply. UI’s default Generation Service Charge is about 13.57¢ per kWh for residential customers beginning in January 2025.
Because UI’s standard service rate is higher than Eversource’s, businesses in its territory may have even greater incentive to compare offers from competitive suppliers. By locking in a lower fixed rate or enrolling in a plan with added services like demand-response or renewable energy, you can reduce overall electricity costs while still receiving reliable delivery from UI.
Competitive Suppliers and Rates
With Connecticut’s deregulated market, dozens of licensed suppliers compete to win your business. Some of the most competitive commercial offers in 2025 include Direct Energy and Constellation at about 8.29¢ per kWh, Major Energy at 8.99¢, and Verde Energy USA at 9.19¢ per kWh according to Quick Electricity’s rate comparison table. These third‑party rates are significantly lower than the utilities’ standard service charges and the statewide average commercial rate of 23.34¢ per kWh.
When evaluating suppliers, consider the following:
- Fixed vs. variable pricing: Fixed‑rate plans lock in a price per kWh for the contract term, protecting your business from market volatility. Variable plans may offer lower introductory rates but can rise unexpectedly.
- Contract length and early termination fees: Review the contract term and any penalties for switching suppliers before the term ends. Longer contracts often yield lower per‑kWh rates.
- Additional services: Many suppliers offer demand‑response programs, renewable energy options or energy‑efficiency services. These can provide extra value beyond the energy rate.
- Customer service and billing: Check whether the supplier offers consolidated billing through your utility or separate billing and ensure the company has a track record of good customer support.
Bottom Line for Connecticut Businesses
The key takeaway is that Eversource and United Illuminating are distribution utilities they will deliver your electricity no matter which supplier you choose. By comparing offers from reputable competitive suppliers, Connecticut businesses can secure rates well below the standard service charge and better manage energy budgets. Use resources like EnergizeCT and licensed energy brokers to review current offers, and don’t hesitate to lock in a low fixed rate when market conditions are favorable.