For the retail electricity provider there are a couple of risks when advertising a fixed price and hiding a fuel surcharge in the rate.
This scheme may assume the energy consumer will not notice the change in their electricity rate. Fuel charges fluctuate substantially so if the assumption is that the customer will not notice you are dead wrong.
Some electricity companies do not regard ethical considerations and risks associated with purposefully hiding fees and charges from their customers. By putting the risks of a changing electric rate in an official sounding name like fuel surcharges people are tricked into a false price.
When prices surge customers start to investigate what a fuel surcharge is especially when they signed up for a “fixed” electricity rate. Risks related to disgruntled electricity customers publishing their issues with the dishonest sales tactics of their electric company are real problems for energy suppliers these days. A brand name that is being built can be severely tarnished if it ends up on PissedConsumer, ComplaintsBoard, or Ripoffreport.
Some retail electricity providers go in to creating a fixed electric rate with a fuel surcharge understanding these risks but plan to sell electricity using several brand names. These electric companies are ok with having one of their brands being tarnished as they have other brands using less risky unethical sales practices.
The energy suppliers that intentionally mislead customers often work from the understanding that customers are generally confused about electric choice. These bad electric suppliers know that although some customers will leave once they pay a couple of high priced bills many new customers will take their place. These electricity companies have an opportunistic business model that is okay scamming new electric customers confused about the shopping and comparing process.
In summary there are risks associated with deceiving electric customers by hiding a variable rate in the guise of a fixed electric rate with a fuel surcharge. Some electricity companies have set up a brand name just for this sales practice and are comfortable with the possibility of it becoming tarnished. Other energy providers do it and get away with it for awhile only to be featured on Ripoffreport for being an unethical energy company. In the end most providers who do this practice will keep doing it as there seems to be a plentiful supply of customers and old customers soon forget.