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Massachusetts Residents Missed Out On Potential $1.14 Billion In Electric Bill Savings
The Retail Energy Advancement League (REAL) is a national advocacy organization dedicated to the expansion and modernization of American retail energy markets. In many states, utility monopolies still control the electric market and customers can’t choose where they buy their electricity and gas.
Excerpts from the REAL Press Release:
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Analysis Reveals the Financial Benefits of Retail Energy Choice, but Proposed Legislation Threatens Consumer Freedom
In 2023, nearly half a million Massachusetts customers chose a competitive electric supplier rather than their default utility provider. Customers choose competitive electric suppliers for a multitude of reasons, including lower rates, predictable bills, 100% renewable energy products, or value-added plans like free nighttime charging for electric vehicles.
An analysis of 2023 Massachusetts utility ratepayer costs shows that consumers on default utility service could have collectively saved as much as $1.14 billion in 2023 had they shopped on EnergySwitchMA.gov and enrolled with the lowest-cost competitive retail supply offer.
“Consumers opt for competitive electric suppliers for many reasons, one being significant cost savings. Whether it’s securing lower rates, managing predictable bills, or aligning with environmental priorities, the potential for substantial savings is a driving force,” said Christopher Ercoli, President and CEO of the Retail Energy Advancement League. “If more
Massachusetts residents had chosen a retail supplier they could have unlocked even greater savings. Recognizing consumers’ ability to actively participate in managing their energy costs is crucial.”
As of December 2023, there were 203 retail supply offers for residents posted on the state’s EnergySwitchMA.gov website, including:
- 84 fixed-price offers cheaper than the default utility rate
- 104 100% renewable offers
- 64 100% renewable offers cheaper than the default utility rate
In 2023, utility prices were wildly unpredictable. The cost of supplying electricity changed frequently, with National Grid’s residential supply rate going from 33.9¢ kWh to 14.1¢ kWh and then back up to 18.2¢kWh in a three-term period. This volatility hinders customers’ ability to budget and limits predictability in billing. {***}
