Press Release  New Report: Massachusetts Residents Lost Over $577 Million Through Competitive Electric Supply Contracts In The Last 8 Years

Boston — Attorney General Andrea Joy Campbell today released a new competitive electric supply report, which found that in the last eight years, individual residential customers who switched to and received their electric supply from competitive suppliers paid over $577 million more on their electric bills than they would have paid if they stayed with their utility company’s basic service. As detailed in the new report, customers accrued significant net losses in seven of eight years studied, with $51.8 million in net losses for the two most recent years, July 2021–June 2023.   

“This report once again shows a clear pattern by the individual competitive electric supply industry of substantially harming our residents, with customers experiencing net losses of $51.8 million for the two years studied and predominantly in communities of color and low-income communities,” said AG Campbell. “The harms caused by these companies significantly outweigh any benefits to consumers, and I will continue to push and advocate to the Legislature for the elimination of this predatory and broken industry.” 

During the most recent study period, July 2022–June 2023, utility basic service rates in some areas of Massachusetts were more than double the highest-ever basic service rate due to unprecedented volatility in the energy markets. This should have presented the perfect opportunity for the competitive electric supply market to deliver on its longstanding promises to provide individual residential customers with significant savings.  Instead, customers who signed up with an electric supplier realized only $30.4 million in net savings for the year, a number that is dwarfed by the significant net losses experienced in every other year studied. 

Moreover, during this anomalous year of small savings, low-income competitive electric supply customers continued to experience net losses, and during the previous year, July 2021–June 2022, individual residential electric supply customers experienced net losses of $82.2 million. 

The report provides further support for the AGO’s recommendation that the Massachusetts Legislature eliminate the individual residential electric supply market due to “the size of the harm to consumers, the significant losses in seven out of eight years of this study, and the continuing loss from one year to the next for low-income consumers.” 

Today’s report highlights the urgent need to pass legislation that AG Campbell, Senator Brendan Crighton and Representative Frank Moran filed that will ban these companies from signing up new individual residential customers in Massachusetts. 

Any resident with concerns about these competitive electric suppliers should file a complaint with the AG’s Office or call the consumer hotline at (617) 727-8400. Residents with questions can also contact the Consumer Division of the Department of Public Utilities at (877) 886-5066.  To learn more about the individual electric supply market, including FAQs and prior reports issued by the AG’s Office, visit https://www.mass.gov/competitive-electric-supply. 

This matter is being handled by Division Chief Elizabeth Anderson, Senior Advisor for Climate and Energy Benny Meshoulam, and Assistant Attorney General William Rose, of the Attorney General’s Energy and Ratepayer Advocacy Division. 

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