- Executive Office of Energy and Environmental Affairs
Media Contact for Secretary Beaton Announces Elimination of Basic Service Bill Recalculation
Boston — The Baker Administration today announced that the Department of Public Utilities (DPU) has issued an order eliminating the basic service bill recalculation provision for residential and small commercial and industrial electric customers. Effective immediately, electric distribution companies may no longer recalculate the bills of customers who have switched from default basic service to a competitive supplier.
“Consecutive harsh winters, combined with natural gas infrastructure constraints, have caused residents across Massachusetts to endure a spike in winter basic service rates,” said Energy and Environmental Affairs Secretary Matthew Beaton. “This ruling by the Department of Public Utilities will allow ratepayers looking for the most cost-effective energy supply to switch to a competitive supplier without facing the burden of a bill recalculation charge.”
The bill recalculation provision, enacted in 2000, was intended to ensure that basic service customers pay the full costs of providing the service for the period that the customers receive the service. In many instances, the recalculation could result in either a charge or credit, depending on the market price of electricity and the basic service price when the customer left basic service.
Before its elimination, customers taking basic service through the fixed price option who switch to a competitive supplier during a pricing term would have their basic service costs recalculated using the monthly prices that were in effect while the customer received basic service.