If you want to ensure that you get a fair deal from your energy supplier, you need to understand the service you receive. One of the most important things is that you understand your energy supplier's terms of service. Any residential energy customer in New Jersey has the right to receive a one-page summary of the services they receive from a third-party energy supplier. The page should set out the most important terms in your contract so that they're easy to understand. This Third Party Supplier Contract Summary is supplied in English and Spanish and should include an explanation of fixed and variable rates. Use the tips below to make sure that you can read and understand your terms of service.

Information About the Supplier

Your contract summary should first provide you with helpful information about your supplier. It should include the name of the company and their contact information. You should be able to see a telephone number, email address, mailing address, and website. The document should also show the company's BPU license number. This proves that they are a legitimate company that meets the requirements to provide energy in New Jersey. There should be information about the distribution company too, along with a statement making it clear that they will continue to deliver the energy supply.

Pricing

Thanks to New Jersey energy choice, residents in the state have a choice of prices for their energy. To help them compare New Jersey electricity rates, suppliers should make their pricing clear. Your terms of service should include information about fixed-rate and variable-rate contracts. It should say which one your contract is and provide more information. If it's a fixed contract, it should state the time-frame. If it's variable for part or all of the contract, it should explain how pricing works. There might be price ranges or ceilings, or the price might be tied to a published index or a utility Price to Compare figure. The document should also provide the cost of generation and supply.

Savings

Energy choice is New Jersey is designed to help customers save. However, using a third-party supplier might not always be the best choice. Your contract summary should make it clear that the supply price might not help you save. If the contract promises a certain amount of savings, it needs to explain how that figure is calculated. The document should also mention incentives, such as discounts or cashback.

Cancellation and Switching

The terms should also include information about switching supplier. It needs to give a time that it would take to switch back to a utility or to another third-party supplier. It should use plain language to explain that you have seven days to cancel the contract once it starts. Information about early cancellation and associated fees should be included too.

Contract Information

You will also find the contact's start date and term or length. Renewal terms should also be included so that you know what your options are at the end of the contract.

Your contract summary should be in plain language, so it's easy to understand. If you're unsure, you can contact your supplier or distributor.