Gov. Maura Healey mentioned she is open to a ban on aggressive electrical suppliers in Massachusetts, an trade that supporters say promotes client selection however critics argue locks clients into contracts that may finally result in larger vitality payments.
The primary-term Democrat has lengthy railed towards the aggressive electrical provide market as one which overcharges shoppers and violates client safety legal guidelines. After a radio interview Wednesday, Healey mentioned she is going to “support efforts to hold them accountable.”
“I think I would,” she mentioned when requested if she would assist a invoice this yr to ban the trade. “I have before. But I really view that as something … the attorney general would file as rate payer advocate and protector of consumers.”
An effort to bar aggressive electrical suppliers from signing up new residential clients, leaving them with solely industrial shoppers, was dropped from a serious local weather invoice Healey signed final yr. Legal professional Common Andrea Campbell additionally supported the Senate-backed language.
The difficulty might floor within the 2025-2026 legislative session after Healey accused the aggressive vitality trade earlier this week of “overcharging customers and flagrantly violating consumer protection laws” amid excessive vitality payments.
Healey mentioned the Division of Public Utilities has began to look at “potential regulations” to guard clients from this predatory trade.”
“Gov. Healey will continue to advocate for a solution to the harms brought by this industry. There is potential to save Massachusetts $335 million over five years,” her administration mentioned in an announcement.
Talking to reporters Wednesday, Healey mentioned “too many people” join aggressive electrical provide solely to “end up paying boatloads more later down the line.”
“It sounds good in the beginning, and then they end up paying much higher bills than they would have paid if they just stuck with the utility. So to me, it’s still about affordability. It’s still about protecting consumers and protecting ratepayers,” she mentioned.
A report launched final yr by Campbell’s workplace discovered that particular person residential clients who switched to and obtained their electrical provide from aggressive suppliers over the earlier eight years paid $577 million extra on their electrical payments than they’d have in the event that they stayed with fundamental providers.
Between July 2022 and June 2023, utility fundamental service charges in some areas of the state had been greater than double the earlier highs due to “unprecedented volatility in the energy markets,” Campbell’s workplace mentioned.
That ought to have created a “perfect opportunity” for the trade to ship financial savings to residential clients, the legal professional common mentioned.
“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,” Campbell’s workplace mentioned.
However a report launched this yr by the Retail Power Development League, a bunch that helps the trade, mentioned native aggressive vitality suppliers supplied “an average lowest monthly fixed rate” in 2024 that was 5 cents cheaper than the collective common charged by the seven utility firms.
Greater than 425,000 residential clients had been enrolled with a aggressive vitality provider as of June 2024, in response to the group.
Retail Power Development League CEO and President Chris Ercoli mentioned shoppers are “handcuffed” to what their utility suppliers wish to cost them with out aggressive vitality suppliers.
“Having the ability to shop for your own energy –– and the type of energy you want supplied –– frees consumers of utility privilege that holds them hostage because of their zip code. As we continue to see increases in daily costs to live, retail energy is delivering alternatives to Massachusetts residents and opportunities to save,” Ercoli mentioned in a January assertion.
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