Otis Singleton
Choosing an electricity supplier in Massachusetts can be a daunting task, but understanding the market and your options can help you make an informed decision. Electricity choice in Massachusetts allows residents and businesses to choose between competitive electricity suppliers, offering variable or fixed rates, to find the best plan for their needs. With the deregulation of the energy market, consumers have the power to select suppliers that offer lower rates or unique incentives, but it's important to be aware of potential sales pressure and understand your rights as a customer. By comparing rates, considering renewable energy options, and using tools like Choose Energy, Massachusetts residents can navigate the complex world of electricity suppliers and make choices that save them money.
| Characteristics | Values |
|---|---|
| Customer choice | Customers can choose to purchase "supply products" from competitive suppliers or stick to their electric company |
| Competitive suppliers | Companies licensed by the Massachusetts Department of Public Utilities (DPU) to sell electricity |
| Fixed Basic Service | If you don't choose a competitive supplier, you will receive electricity supply from your electric utility at a fixed rate |
| Variable rates | Competitive suppliers offer variable rates that change month-to-month according to the market and the terms of your agreement |
| Fixed rates | Competitive suppliers also offer fixed-rate contracts that remain the same for the length of your contract, but many of these will automatically renew at a variable rate |
| Lower rates | Competitive suppliers often provide lower rates than traditional utilities |
| Renewable energy | Some companies offer renewable energy credits (RECs) or source 100% of their energy from green sources |
| No-deposit plans | Many providers offer no-deposit plans or prepaid plans to avoid deposits |
| Online comparison | Customers can compare rates online and choose the best plan for their needs |
| Complaints | Customers can file complaints against electricity suppliers or brokers on the official website |
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What You'll Learn
Understanding the electric market in Massachusetts
Energy choice in Massachusetts allows electricity customers to choose a competitive electricity supplier to help lower their electricity supply rate per kWh. This means that public utilities are no longer the only option for receiving an electricity supply. Instead, utilities focus on delivering electricity to your home or business and maintaining the grid infrastructure.
If you are a customer of an electric company in Massachusetts, you may choose to purchase "supply products", or the actual electricity, from competitive suppliers. Competitive suppliers are companies licensed by the Massachusetts Department of Public Utilities (DPU) to sell electricity. An electric utility, such as Eversource or National Grid, delivers electricity, while a competitive supplier supplies it.
If you do not choose a competitive supplier, you will continue to receive electricity supply from your electric utility. This electricity supply is called "Fixed Basic Service". The rate for Fixed Basic Service changes every six months for residential customers. Electric utilities in Massachusetts do not earn profits from selling electricity supply. Every six months, your electric utility sets the Fixed Basic Service price for residential customers based on the electric utility's cost of purchasing wholesale electricity.
Many fixed-rate contracts will automatically renew at a variable rate, which typically changes from month to month according to the market and the terms of your agreement with a competitive supplier. If you are considering buying competitive electricity, you should ask the supplier for the price per kWh and whether the contract provides renewable power.
Massachusetts residents can compare various energy suppliers to find the cheapest electricity in the state. Some top Massachusetts suppliers include Constellation Energy, Direct Energy, and Clearview Energy.
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Comparing products, prices, and suppliers
Energy choice in Massachusetts allows electricity customers to choose a competitive electricity supplier to help lower their electricity supply rate per kWh. You can compare products, prices, and suppliers to make an informed decision.
Comparing Products
When comparing electricity products, consider the type of contract and the energy source. Competitive suppliers offer fixed and variable rates. A fixed-rate contract provides a consistent rate throughout the contract term, which could range from a few months to several years. However, many fixed-rate contracts automatically renew at a variable rate, which fluctuates monthly based on market conditions and your agreement terms. Additionally, inquire about the price per kWh (price per unit of electricity) and whether the contract includes renewable power options, such as renewable energy credits (RECs) or green energy sources.
Comparing Prices
To compare prices, you can utilize online resources such as Choose Energy, a national energy marketplace. By entering your ZIP code, you can access and compare the latest electric and gas plans, along with their rates, in your area. This allows you to identify the most affordable options available to you. The average monthly residential electricity bill in Massachusetts is $174.52, calculated based on the average electric rate of 31.22 cents per kWh and a typical usage of 559 kWh per month. Keep in mind that electricity rates change frequently, so it's essential to check for the most recent rates before making a decision.
Comparing Suppliers
When comparing suppliers, you can refer to the list of top Massachusetts suppliers, which includes Constellation Energy, Direct Energy, and Clearview Energy. These suppliers often compete for customers by offering lower rates or unique incentives. Additionally, consider the reputation and reliability of the supplier, and read the Terms of Service (ToS) for any plan you consider to understand all its components. You also have the right to choose between a competitive supplier and Fixed Basic Service provided by your electric utility. Remember that your location determines your utility company due to the established power grid.
By comparing products, prices, and suppliers, you can make an informed decision about choosing an electricity supplier in Massachusetts that best suits your needs and preferences.
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Fixed Basic Service vs. competitive suppliers
If you are a customer of an electric company in Massachusetts, you have the option to purchase "supply products" from competitive suppliers. These are companies licensed by the Massachusetts Department of Public Utilities (DPU) to sell electricity to people in Massachusetts. If you don't buy from a competitive supplier, you will still receive electricity from your electric company, known as Fixed Basic Service.
Fixed Basic Service is the electricity supply offered by your electric utility. The rate for this service changes every six months for residential customers, based on the electric utility's cost of purchasing wholesale electricity. This rate is typically higher during the winter months, especially January and February.
Competitive suppliers offer both fixed and variable rates. A fixed rate remains the same during the length of your contract, which could be a few months or several years. However, many fixed-rate contracts will automatically renew at a variable rate. Variable rates typically change from month to month, according to the market and the terms of your agreement.
When choosing between Fixed Basic Service and a competitive supplier, it's important to consider the potential benefits and drawbacks of each option. With Fixed Basic Service, you may experience fluctuations in rates every six months, but you don't have to worry about early termination fees or unexpected rate increases associated with some competitive supplier contracts. On the other hand, competitive suppliers may offer introductory rates that are lower than Fixed Basic Service rates, and you have the flexibility to choose a supplier that aligns with your values, such as one that provides renewable energy options.
It's worth noting that Massachusetts customers have historically lost money on competitive electric supply. From July 2015 to June 2020, Massachusetts residents collectively paid $426 million more than they would have paid for electricity from their utility company. Therefore, it's crucial to carefully review the terms and conditions of any competitive supplier contract before making a decision.
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Choosing a renewable energy plan
Massachusetts has provided its residents with the freedom to choose their electricity supplier since the deregulation of the energy market in 1998. This means that you can choose from nearly 60 energy companies to supply your electricity.
When choosing a renewable energy plan in Massachusetts, you can opt to purchase "supply products" from competitive suppliers. Competitive suppliers are companies licensed by the Massachusetts Department of Public Utilities (DPU) to sell electricity to people in Massachusetts. If you do not choose a competitive supplier, you will continue to receive electricity from your electric utility, which is called "Fixed Basic Service".
Competitive suppliers offer fixed and variable rates. A fixed rate remains the same for the length of your contract, which could be a few months or several years, while a variable rate typically changes from month to month according to the market and the terms of your agreement with the supplier. Many fixed-rate contracts will automatically renew at a variable rate.
When considering a competitive supplier, you should ask the supplier for the following information:
- Price per kWh (price per unit of electricity sold)
- Whether the contract provides renewable power
- Whether there are any cancellation or early termination fees
If your electric supplier has been changed without your permission, or you have been charged cancellation or early termination fees that you don't understand, you should contact the DPU at 877-886-5066 or complete their online complaint form.
You can also purchase electricity from offsite renewable energy sources, such as wind, solar, hydroelectric energy, or energy produced by anaerobic digesters. Additionally, investing in your own solar panels can be a good option, as it can increase the value of your home and help you see a profit on your investment within seven years. Massachusetts offers various incentives to encourage the adoption of renewable energy sources, such as the Solar Massachusetts Renewable Target (SMART) program, which provides financial support for the installation of solar energy systems.
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Filing a complaint against a supplier
If you have a complaint about your electricity supplier in Massachusetts, there are several options available to you. Firstly, it is recommended that you contact your electricity company directly to try and resolve the issue. You can find their contact information on the Mass.gov website. If you are unable to resolve the problem with your supplier, or if your service has been shut off, you can file a complaint with the Massachusetts Department of Public Utilities (DPU).
The DPU oversees competitive electric supply in the state and can be contacted by calling $(617) 737-2836 or toll-free at (877) 886-5066. You can also complete their online complaint form. If your electricity has been shut off, or you have another urgent issue, it is recommended that you call the Consumer Division's hotline instead of submitting an online complaint.
Additionally, you may seek assistance from the Office of Consumer Affairs and Business Regulation and the Executive Office of Energy and Environmental Affairs, which work to clarify consumers' rights in Massachusetts. It is important to be aware of your rights as a consumer and to know how to enforce them. For example, energy providers in Massachusetts must offer discounted rates to individuals on public assistance benefits who meet certain income limits.
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Frequently asked questions
Competitive suppliers are companies licensed by the Massachusetts Department of Public Utilities (DPU) to sell electricity to people in Massachusetts. If you don’t buy from a competitive supplier, you will still receive electricity from your electric company.
You can compare various energy suppliers to find the cheapest electricity in MA. Some top Massachusetts suppliers include Constellation Energy, Direct Energy, and Clearview Energy. You can also use Choose Energy, a national energy marketplace, to compare and sign up for electricity plans in your area.
If you are considering buying competitive electricity, you should ask the supplier for the following information: the price per kWh, whether the contract provides renewable power, and whether the contract offers a fixed or variable rate.
