Looking to promote participation in New York’s competitive retail energy markets, National Grid unveiled a new program Thursday under which residential and small business customers in the state can receive a guaranteed 7% discount on electricity and natural gas for two months by selecting an alternative energy supplier.

Information on the New Choices program is going out in customers’ July bills. Customers who choose an alternative supplier will continue to receive delivery service, emergency response and storm restoration from National Grid. Back-up supply service is also provided by National Grid if an alternative supplier fails to perform. In all, 12 suppliers are participating in New Choices, offering electricity, natural gas or both. That total includes five new suppliers to National Grid’s service territory.

“We encourage customers to learn more about their options when it comes to electricity and natural gas supply, and to make the choice that is right for them,” said Joseph T. Ash, Jr., National Grid’s vice president of energy supply, pricing and regulatory proceedings. “New York is on the forefront of creating a competitive market for energy supply and our New Choices program contributes to that effort.”

Ash added that New Choices is a low-risk way for customers to try out an alternative supplier. He explained that participating customers are initially enrolled in a month-to-month pricing plan, from which they can withdraw at any time without penalties or fees.

National Grid noted that residential customers in New York have had the option of choosing an alternative supplier for natural gas since 1996 and electricity since 1999. “The New Choices program expands the discount available to customers on an introductory basis and makes it easier for them to enroll with an alternative supplier,” the company said.

National Grid said it will purchase the receivables of participating alternative energy suppliers, making it easier for alternative energy suppliers to participate in the program. The receivables are purchased at a discount that equals National Grid’s collections and bad debt write-off costs in the company’s rate agreement. Customers can also enroll by visiting www.nationalgridus.com/newchoices.

The discount is taken off the supply portion of a customer’s bill and is guaranteed to be 7% lower than the National Grid supply price for the comparable two-month introductory period. Participants are eligible to receive only one New Choices discount per service for the life of their account. Dual-service customers (both electricity and gas), can receive the discount on each service (7% off electric and 7% off gas). Customers can enroll for both services at the same time, or can enroll in one service now and one later. Customers can choose a supplier or let National Grid randomly choose one for them.

In the U.S., National Grid delivers electricity to approximately 3.3 million customers across 29,000 square miles of Massachusetts, New Hampshire, upstate New York and Rhode Island. The company also distributes natural gas to 565,000 upstate New York customers.

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