Beatrice Lang
Changing electricity suppliers in Massachusetts is a straightforward process. First, call your current supplier and ask about any fees or penalties for ending your contract early. If there are fees, you can ask your supplier to waive them, but they may or may not agree to do so. If they refuse, you can switch suppliers once your contract ends, or end the contract immediately and pay the early termination fee. It is important to understand the rates and contract terms offered by competitive suppliers, as they may be higher than the Fixed Basic Service rates offered by your electric utility. Massachusetts residents have paid more collectively when purchasing electricity from competitive suppliers. However, you are free to contact and compare offers from different suppliers to determine which one best meets your needs.
| Characteristics | Values |
|---|---|
| Process for changing electric supplier | 1. Call your current supplier and ask about fees and penalties. 2. Weigh your options. 3. Contact and sign up with a new supplier. |
| Things to consider before changing supplier | 1. Ask the supplier for the price per kWh. 2. Understand how the rate will change over time. 3. Check if the contract provides renewable power and its source. |
| Things to know about electricity supply in Massachusetts | 1. The Fixed Basic Service rate changes every six months. 2. Electricity supply is more expensive in the winter months. 3. Electric utilities in Massachusetts do not earn profits from selling electricity supply. |
| Concerns and complaints | 1. Some Massachusetts consumers have complained about being switched to competitive supply without their authorization. 2. If you feel you have been unduly wronged, you can seek help from the Office of the Massachusetts Attorney General or the Department of Public Utilities. |
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What You'll Learn
Understanding the Massachusetts electricity market
The Massachusetts electricity market is deregulated, meaning that third-party suppliers can compete with utility companies to provide electricity to residents. This has resulted in more competitive prices, giving residents the option to choose a supplier that offers cheaper rates than their utility company's basic service. Residents can also switch to cleaner electricity sources, such as renewable energy, at affordable rates.
The basic service offered by utility companies in Massachusetts consists of "mixed energy", which includes both fossil fuels and renewable energy sources. However, the basic service often has a higher emphasis on fossil fuels. While the basic service must include a minimum percentage of renewable energy as mandated by the state's Renewable Portfolio Standard (RPS), some competitive third-party suppliers exceed this standard and offer cleaner energy options.
Massachusetts residents can explore competitive supply options through the Energy Switch MA website, where they can compare products and prices. When considering a competitive electricity supplier, it is important to ask about the price per kWh and whether the contract provides renewable power. Competitive suppliers may offer variable rates that change from month to month, and it is important to understand how these rates will be determined. Some suppliers may offer introductory rates that are lower than the Fixed Basic Service rate, but these rates may increase significantly after the introductory period ends.
It is worth noting that electric utilities in Massachusetts do not profit from selling electricity supply. The Fixed Basic Service price for residential customers is set every six months based on the utility's cost of purchasing wholesale electricity. Due to seasonal factors, electricity supply in Massachusetts tends to be more expensive during the winter months, especially January and February. As a result, a fixed-rate contract with a competitive supplier that lasts for an entire year may offer a more favourable rate during the winter months. However, it is important to carefully review the terms and conditions of any contract before making a switch.
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Fixed Basic Service rates
In Massachusetts, the Fixed Basic Service rate is the electricity supply offered by electric utilities. The rate for Fixed Basic Service changes every six months for residential customers, with the specific dates being February 1 and August 1. This rate is based on the electric utility's cost of purchasing wholesale electricity and remains the same for a set period of time, typically several months. Electric utilities do not profit from selling electricity supply, and the Fixed Basic Service price is set to cover their costs.
The Fixed Basic Service rate is different from competitive suppliers' rates, which can be either fixed or variable. Competitive suppliers are licensed by state energy regulators to sell electricity and may offer lower "teaser" rates for a short introductory period. However, after this period, their rates can be twice as high as the Fixed Basic Service rates. It is important to understand how the competitive supplier's rates will change over time, as they may use vague language regarding "market conditions" or "supplier's discretion."
When considering a switch to a competitive supplier, it is essential to ask for information such as the price per kWh and whether the contract includes renewable power. Residential customers in Massachusetts who are eligible for a discount can apply through National Grid to receive a credit based on 32% of their total charges.
For Industrial Group customers, there is an option to switch between the Fixed Price Option and the Variable Price Option once during their uninterrupted stay on Basic Service. If they switch to a competitive supplier in the middle of a three-month pricing period, they will receive a billing adjustment, which can be either a credit or a charge, to account for the actual cost of Basic Service electricity consumed.
Overall, the Fixed Basic Service rate in Massachusetts provides a standard option for electricity supply, with rates adjusted every six months to cover the electric utility's costs, while competitive suppliers offer alternative rates that may provide potential savings but carry the risk of higher prices.
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Variable rates and introductory offers
When considering buying electricity from a competitive supplier in Massachusetts, it is important to understand the different rates and offers available. Competitive suppliers offer both fixed and variable rates. Variable rates typically change from month to month, and suppliers may use vague language to describe how these rates are determined, such as "market conditions" or "supplier's discretion".
Variable rates can be offered as introductory or "teaser" rates, which are lower than the Fixed Basic Service rate offered by electric utilities. However, once this introductory period ends, the competitive supplier can set rates that are much higher than the Fixed Basic Service rates. It is important to understand how the rate will change after the introductory period, as some customers in Massachusetts have complained about being switched to competitive supply without their authorization.
Fixed Basic Service rates, on the other hand, change every six months for residential customers and are based on the electric utility's cost of purchasing wholesale electricity. This means that during the winter months, especially January and February, the Fixed Basic Service rates are expected to be higher.
When considering a competitive supplier, be sure to ask about the price per kWh, whether the contract provides renewable power, and any potential early termination fees. You have three days to cancel a contract without charge or penalty, and you can always return to Basic Service if needed.
It is recommended to compare offers from different suppliers and understand your current energy usage and costs before making a decision. Energy usage can vary from month to month, so it is important to consider past and current costs when estimating potential savings or additional costs with a competitive supplier.
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Choosing a competitive supplier
If you are considering switching to a competitive supplier in Massachusetts, there are a few things to keep in mind. Firstly, understand the potential advantages and disadvantages of switching. While competitive suppliers may offer the possibility of greater savings and longer-term contracts, they might also end up costing you more in the long run. For instance, Massachusetts residents on competitive electric supply paid $426 million more than they would have to their utility provider from July 2015 to June 2020.
When considering a competitive supplier, it is essential to ask the right questions. Ask the supplier about the price per kWh and whether the contract includes renewable power. If so, inquire about the source of this renewable power. Additionally, be cautious of sales agents who may employ tactics such as asking to see your utility bill to "determine eligibility" or "compare rates." Some Massachusetts consumers have complained about being switched to competitive supply without their authorization after sharing their account information.
Before making a decision, it is crucial to understand your current electricity supply options. Your Eversource bill, for example, includes supply and delivery charges. The delivery charge compensates the local utility company, Eversource, for delivering electricity to your home, while the supply charge is what your supplier bills for generating the electricity you consume. You can choose to stick with Eversource's Basic Service rates, or you can explore competitive supplier options for potential savings.
To make an informed choice, educate yourself about the competitive supply options available. The Electric Power Division of the Department of Public Utilities (DPU) provides consumers with basic information on competitive electric supply products. They also offer a resource called Energy Switch MA to help you select a competitive supplier and find one that incorporates renewable energy. Remember, you have three days from receiving your competitive supply contract to cancel without any charge or penalty.
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Cancelling your contract
Before cancelling your contract, it is important to understand the terms and conditions of your contract with your supplier. Some contracts may have early termination fees associated with cancelling before the end of the contract term. It is recommended that you call your current supplier to ask about any potential fees and request that they waive any early termination fees if possible. If you decide to cancel your contract, you have the option to switch back to your previous electric utility company or choose a new competitive supplier.
If you are considering buying competitive electricity, you should ask the supplier about the price per kWh and whether the contract provides renewable power. Competitive suppliers may offer variable rates that change from month to month, so it is important to understand how these rates will change over time. Due to seasonal factors, electricity supply in Massachusetts is typically more expensive in the winter months, especially January and February. This may impact the rates you are offered by competitive suppliers.
You have three days from receiving your competitive supply contract to cancel without charge or penalty. After this three-day period, you can still cancel your contract, but there may be an early termination fee, and you will need to return to Basic Service. If you feel that you have been wronged during the cancellation process, you can seek help from the Office of the Massachusetts Attorney General or the Department of Public Utilities.
It is important to note that cancelling your contract with your electric supplier will not affect the reliability of your energy service. The quality of service should remain the same, and you will still have access to customer support and emergency response services.
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Frequently asked questions
To change your electricity supplier in Massachusetts, you must first contact your desired new supplier and agree on a contract with them. Then, they will contact your previous supplier to enroll your account. Before switching, make sure to ask your new supplier about any potential fees and penalties for early termination.
Before switching electricity suppliers in Massachusetts, it is important to ask the supplier for the price per kWh and whether the contract provides renewable power. You should also be aware of any potential “teaser” or “introductory" rates that may change after a short period.
To know if you are getting a good deal, you should compare the price you are currently paying for electricity with the offers from other suppliers. You can also calculate your monthly savings or additional costs by multiplying your monthly kWh by the savings or additional cost of the new supplier.
