A research report released in March by the Massachusetts Attorney General’s office says that the competitive electricity supply market has been harmful to consumers who signed up as individual customers. The study found that residents who contracted directly with competitive suppliers paid a total of $178.6 million more for electricity than they would have paid the utility, over a two-year period. Low income neighborhoods were harmed the most. For these reasons, as well as the high number of complaints against competitive suppliers received by the Attorney General’s office, the report recommends eliminating the competitive supply market for individual customers.
This report reinforces concerns that BostonCAN has long expressed about the way that many competitive suppliers do business with individuals. Some suppliers offer low introductory rates that increase dramatically later, or even engage in deceitful practices like calling and claiming to be the utility company. While some offer extra renewable energy, they may source it from other regions of the country, which does not help shift the New England grid away from fossil fuels or create “green” jobs here.
But what about Community Choice Energy? Doesn’t it use a competitive supplier?
Yes, but with CCE, the city chooses one supplier for all of its businesses and residents, using a formal evaluation process conducted by energy and financial experts. Unlike a competitive supplier, the city has an incentive to keep rates low. CCE can specify extra renewables that are locally sourced. The attorney general’s report specifically states that its recommendations do not apply to CCE.
BostonCAN strongly supports the speedy establishment of a CCE program in Boston. Tell Mayor Walsh you want your city to choose your competitive supplier.