IDT Energy Starts At 7% Discount, Switches To Variable After 2 Months

While scanning the collateral Brian picked up in his investigation, we nearly choked on this gem buried in their terms and conditions: it says that you’ll get 7% savings for the first two months, but after that, there’s no telling whether your bill will be higher or lower than what it would be with ConEd (click to enlarge image).

The contract says,

The price for electricity and natural gas sold under this Agreement for the first 2 months of service is offered at a 7% discount to the LDC [in this case, ConEd]. After the first 2 months of service, service is offered at the Variable Price…

Variable Price: The variable price for all electricity and natural gas sold under this Agreement and based upon electricity and natural gas market pricing, transportation, or transmission, and other market and business price related factors.

AKA, whatever deal we can put together on the wacky world of the wholesale energy market. So at first, switchers to IDT see their bills and go wow, these are 7% cheaper. 2 months down the road, they could see their prices spike. They can of course, see them fall, but that uncertainty is a far cry from the “instant savings” IDT Energy reps pitch at customer’s doors. What was that about ESCOs failing to live up to their hype…? — BEN POPKEN

Click here for the full contract.

PREVIOUSLY:
Consumerist Undercover At IDT Energy: The Day Of O
Consumerist Undercover At IDT Energy: The Job Interview
The Consumerist Goes Undercover At IDT Energy: Day One
The Consumerist Goes Undercover At IDT Energy

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  1. rmz says:

    This isn’t a problem for people who can read all of the fine print. The real problem occurs when you get IDT trying to pressure people who can’t speak English well into signing contracts, when they certainly can’t understand the fine print.

    I wish there were some sort of standard expectation of conscience in sales where salesmen would make sure that buyers had the “whole story” before signing an agreement, but in the world of “Always Be Closing” driven by commissions that’s a pipe dream. Get them to sign on the line that is dotted! It doesn’t matter if they know what the heck they’re signing up for.

  2. ggoodwin says:

    So far this is a great write up and investigation. I look forward to part 3 and applaud you for the undercover work you endured.

    Sounds like the first day was hell with little payoff though. Makes me think twice about taking my cushy desk job for granted.

  3. John Stracke says:

    Sounds like they undercharge you the first two months and then hike the rates up to make up for it.

  4. lennonnmason says:

    Well, it does appear as though none of you can read the “fine print.” This agreement specifically says for consumers who sign up through an LDC referral program they would receive a 7% discount the first two months then go to the variable rate. So, what you are failing to mention is that this part of the agreement does not even apply to everyone. It does appear from previous posts and reviews about this company that most people sign up through door to door salesman. This is something that you should take a better look at before making such a claim.