Quote:
Originally Posted by mowmylawn
The ESCO system in New York is set up to be a scam. So-called alternate suppliers end up costing you more, in fact, a lot more and use the old 'we need to use the Nat'l Grid infrastructure' to deliver the nat gas.
Be very careful with some of these alternate suppliers.
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What she said.....
Very few people realize that the ESCO's will sell you on providing a cheaper commodity price on the Natural Gas itslef. BUT. because these companies buy on what is essentially the 'spot' market for natural gas they do not have priority on the pipelines that deliver into the area. This is because ESCO's cannot really set up long term supply contracts due to the month to month nature of their business
What this essentially means is that when there is high demand (very cold weather) or there are pipeline delivery issues the gas supplied by these companies is some of the first to be cut in favor of firm supply contracts. It doesn't mean you won't get gas for your house, National Grid is required to make sure your individual supply delivery is made whole. It does mean that the ESCO will pay a higher prixe for the supply and they will pass this increased cost on to you, the consumer.
So when they tell you they'll savve you 5% to 10% on the actual Gas itself, you're really talking about a very few cents on your actual gas bill.
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