Submitted by chroniclerofblarney t3_zs91x5 in Connecticut
chroniclerofblarney OP t1_j19s8ae wrote
Reply to comment by kesagatame-and-Chill in What's in it for Constellation and other third party electrical providers? by chroniclerofblarney
I get it. But in this case, the third-party has to buy the energy from eversource at a higher rate than what they are charging to the customer (i.e. me). So how are they making up for that loss? If electricity costs $.24 per kilowatt hour from eversource and the third-party is only taking $.17 from the customer, how does that work? The only thing that makes sense to me is what another poster put here, which is that they are hoping that the price that eversource charges will drop below the $.17 and customers will be too lazy or forgetful to change their supplier when the time comes. That seems like such a strange gamble, as it depends upon the rather unpredictable irrationality of the customers. But it’s the only explanation that makes any real sense to me.
kesagatame-and-Chill t1_j19upeg wrote
Sounds like you are falling for there bullshit.
Gefilte_Fish t1_j19xyfl wrote
Energize CT and the Constellation website explains how it works. They don't buy from Eversource, they buy from the actual energy companies at auction. They bought credits a while ago and can resell at that lower rate.
They still have a markup but as others have said it's a different business with different operating costs.
https://www.constellation.com/energy-101/energy-choice/what-is-energy-deregulation.html
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