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H 5440

Electric Retail Customer Choice and Third-Party Electric Suppliers

2025-2026 Regular Session Introduced by Gary Brewer

Allows eligible customers to choose their electric retailer and enables third-party suppliers, with oversight, disclosures, and consumer protections.

Scrivener's error corrected
0
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Bill Summary · H 5440

Bill overview

H 5440 (Session 2025-2026, South Carolina) proposes establishing electric retail customer choice and introducing third-party electric suppliers. The bill aims to introduce competition into the electricity market by allowing eligible customers to select their electric service provider and enabling third-party entities to sell electric energy to end users.

Purpose and intent

  • Create a framework for customer choice in the retail electric market, moving beyond a single vertically integrated utility structure.
  • Permit third-party electric suppliers to compete for customers, subject to regulatory oversight and consumer protections.
  • Establish a regulatory structure to govern licensing, market rules, disclosure, and reliability standards to ensure a fair and transparent marketplace.

Key provisions and changes

  • Customer choice framework:
    • Eligible customers would have the option to select an electric retailer other than their default utility.
    • Process and requirements for switching suppliers, including timelines and enrollment procedures.
  • Third-party electric suppliers:
    • Authorization and licensing requirements for entities wishing to sell electricity to end users.
    • Standards for contract provisions, pricing disclosures, and customer protections.
    • Compliance obligations related to reliability, billing, metering, data privacy, and dispute resolution.
  • Utilities’ role and duties:
    • Obligations for default service provision if a customer does not choose an alternative supplier.
    • Requirements for balancing, scheduling, and transmission/distribution operations in a competitive framework.
  • Consumer protection and transparency:
    • Clear disclosures on rates, terms, termination fees, and contract length.
    • Protections against deceptive marketing and unfair practices.
    • Right to switch back (or revert to default supplier) under defined conditions.
  • Oversight and governance:
    • Creation or empowerment of a state regulator or existing agency to license third-party suppliers and enforce compliance.
    • Rules for reporting, market monitoring, and enforcement actions.
  • Transitional provisions:
    • Potential phased rollout or pilot periods, with benchmarks or performance metrics.
    • Timeline for rulemaking, licensing, and implementation dates.

Who would be affected

  • End-use electricity customers who would gain the ability to choose their supplier and potentially secure different pricing or service features.
  • Licensed third-party electricity suppliers seeking to sell to retail customers.
  • Existing default utilities responsible for providing universal service or transitioning customers who do not switch.
  • The state regulatory framework and agencies tasked with implementing and enforcing the market rules, licensing, and consumer protections.

Procedural and timeline aspects

  • First reading and introduction occurred on March 26, 2026.
  • Referred to the Committee on Labor, Commerce and Industry for consideration.
  • Scrivener’s error corrected on June 4, 2026, indicating a clerical correction in the bill text or framing.
  • As a bill introducing market restructuring and competition, expect potential work sessions, amendments, and stakeholder input during committee review, with subsequent readings and potential floor votes before any enactment.

Potential implications

  • Electric market competition could lead to a broader range of pricing options and service features for consumers.
  • Transition challenges include ensuring reliability, protecting consumers, and maintaining grid operation when multiple suppliers participate.
  • Regulatory design will be critical to prevent market manipulation, ensure fair access, and preserve system-wide reliability and affordability.

Note: The summary is based on the bill’s title, sponsor information, and the typical structure of electric retail choice legislation. For exact language, definitions, timelines, and policy details, please refer to the bill’s full text and the committee amendments once available.

Compiled from official sources — confirm details with the bill’s official record.

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