Maryland utility customers can choose to buy their electricity or natural gas supply from the utility or a company other than the utility.1 Due to a new law in Maryland, beginning July 1, 2023, Maryland households that receive financial assistance from OHEP for paying electricity and/or gas bills* may only sign up with a licensed competitive electric 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 SMECO’s current “Standard Offer Service” rate for the rest of your supply contract term. The Standard Offer Service rate is shown on your monthly SMECO bill and includes what you would pay per kilowatt-hour for generation and transmission from your electric utility.
For more information about this law, please visit SMECO’s website or the retail choice website for the Maryland Public Service Commission at MDEnergyChoice.com.
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 Standard Offer Service with SMECO 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.
*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.
1 Customers who choose retail supply will still have their electricity or natural gas delivered to their home by the local utility company.
Frequently Asked Questions
1. What does this change mean for me, in general?
- For current or previous Energy Assistance Household customers on or before July 1, 2023:
- Approved suppliers must offer a price for electricity at or below SMECO’s Standard Offer Service rate for the entire duration of your supply contract.
- Supplier’s charges must be shown on your monthly electric bill.
- Approved suppliers cannot charge any additional fees when you purchase electricity, including any early termination and cancellation fees.
- For non-Energy Assistance Household customers enrolled with a supplier, the change in law will not affect your existing supply contract.
2. What if I am an OHEP Energy Assistance Household recipient already enrolled with a supplier?
- For customers with a month-to-month supply contract as of July 1, 2023:
- Suppliers may offer a new contract meeting the requirements above at the end of the July contract period.
- If the supplier cannot offer a PSC-approved contract, you will be returned to SMECO at the end of the July contract period.
- For customers with a longer duration supply contract 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 a new contract that meets the requirements above or return your account to SMECO.
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 before July 1, you may continue your supply contract for its duration. You will not be able to renew unless your supplier has an approved offer.
- If you enrolled after July 1, your supplier may need to cancel your contract unless your supplier has an approved offer. Your 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.