NOTICE: Important Change to Retail Supply Offer Rules for OHEP Recipients

Maryland utility customers can choose to buy their electricity or natural gas supply from the utility or a company other than the utility (i.e., a retail energy supplier).*  Due to a new law in Maryland, beginning July 1, 2023, Maryland households that receive financial assistance from the Maryland Office of Home Energy Programs (OHEP) for paying their electricity and/or gas bills** may only sign up with a licensed, competitive electric or natural gas supplier if the supplier has an offer that has been approved by the Maryland Public Service Commission (PSC), the State’s utility regulator. The approved offer must set a supply, or commodity, price that remains at or below the local utility’s current “Standard Offer Service” (for electricity) and “Sales Service” (for gas) rate for the rest of your supply contract term. The Standard Offer Service or Sales Service rate is shown on your monthly utility bill and includes what you would pay per kilowatt-hour (electricity), or per therm (gas), for your utility to deliver the energy to you.

If you currently receive OHEP assistance for your energy bills (or received such assistance in the previous fiscal year), and you are also currently enrolled with a supplier who does not offer a PSC-approved plan, and the supplier is planning to return your account to the utility’s Standard Offer Service (electricity) or Sales Service (gas) on or after July 1, 2023, the supplier must follow the cancellation terms of your contract and provide notice at least 30 days prior to ending the contract. The notice from your supplier will explain your options upon cancellation or expiration of your supply contract. Your supplier may not charge you any cancellation or other early termination fee because of this change. If you have questions about your supplier contract, please contact your supplier.

*(Customers who choose retail supply will still have their electricity or natural gas delivered to their home by the local utility company.)

**(An ‘Energy Assistance Household’ means a service address or household associated with a utility account that the Office of Home Energy Programs found has qualified for an electric or gas assistance program during the current or previous fiscal year).

Frequently Asked Questions:

1. What does this change mean for me, in general?
As a current or previous Energy Assistance Household, the following shopping guidelines will apply to you:

  • Approved suppliers must offer you a price for electricity or natural gas that is below the local utility’s Standard Offer Service (electricity) or Sales Service (gas) rate. This price must remain at or below the Standard Offer Service or Sales Service price for the duration of your contract with them.
  • The supplier’s charges must be shown on your monthly electric or natural gas bill.
  • Approved suppliers cannot charge you any additional fees when you purchase electricity or natural gas. This includes any early termination and cancellation fees.

If you are not an Energy Assistance Household recipient on or before July 1, 2023, the change in law will not affect your existing supply contract with a retail energy supplier.

2. What if I am an OHEP Energy Assistance Household recipient already enrolled with a supplier?
If you are currently enrolled with a supplier under a month-to-month contract as of July 1, 2023:

  • Suppliers may offer you a new contract that meets the requirements above at the end of the monthly contract period that expires during July.
  • If the supplier cannot offer you a PSC-approved contract, you will be returned to your local utility’s Standard Offer Service (electricity) or Sales Service (gas) at the end of the monthly contract period that expires during July 2023.

If you are currently enrolled with a supplier for a longer duration period as of July 1, 2023:

  • Suppliers may continue to serve you under your current contract until the expiration date or until the contract is terminated, whichever comes first.
  • At that time, the supplier may offer you a new contract that meets the requirements above or return your account to the local utility.

3. What if I am an OHEP Energy Assistance Household recipient and decide to enroll with a new retail energy supplier on or after July 1, 2023?

  • If the retail supplier is enrolling you in a PSC-approved offer, your new enrollment will proceed and your supply account will be serviced by that supplier.
  • If the supplier does not have a PSC-approved offer, your sale will be cancelled.

4. What if I am currently enrolled with a third-party supplier and then begin receiving OHEP energy assistance grants?

  • If you enrolled with your supplier before July 1, 2023, you may continue your supply contract for its duration, but you will not be able to renew (unless your supplier has a PSC-approved offer).
  • If you enrolled after July 1, 2023, your supplier may need to cancel your contract (unless your supplier has a PSC-approved offer). Your current retail energy supplier will notify you regarding any cancellation.
  • If your supplier has a PSC-approved offer for OHEP grant recipients, your supplier will notify you regarding changing your supply account to that approved plan.

If you have questions about your supply contract, please contact your supplier.