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Attorney General Reports Retail Supplier Charging An Average Rate of 50¢/kWh
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A retail electric supplier in Massachusetts charged residential customers an average rate of 51¢ per kWh for the period July 2023 to June 2024, the Massachusetts Attorney General (AG or AGO) said in an updated report on costs under competitive retail electric supply versus default service
The AG said that, for the period July 2023 to June 2024, Massachusetts residential customers under electric choice in aggregate paid $73.7 million more than basic service
The AG noted that this latest premium for choice service occurred as basic service rates moderated compared to spikes seen in the previous 12-month period, with the AG noting that, for July 2023 to June 2024, the $73.7 million in excess costs under choice exceeded the aggregate savings to residential choice customers ($30 million) seen in the period July 2022 to June 2023
The AG said, "to the extent that some individual suppliers provided temporary and modest relief to consumers during that unprecedented time of sky-high basic service rates, the AGO's July 2023–June 2024 analysis demonstrates a swift return to business as usual, with the broken and predatory individual residential competitive supply market causing significant harm to consumers, and low-income consumers in particular."
"Between July 2023 and June 2024, most competitive electric supply consumers paid more for their electricity compared to the basic service rate, with low-income residential consumers on competitive electric supply plans paying more than non-low-income consumers. As discussed in the 2024 Update, even during the unprecedented 2022–2023 winter season, when record-high basic service rates triggered by macroeconomic conditions presented an ideal opportunity for the individual residential electric supply market to provide consumers with savings, low-income consumers of individual suppliers continued to experience net losses," the AG said
Since July 2015, the July 2022 to June 2023 period was the only year in which residential choice customers in aggregate saved versus default service, the AG said
The AG said that the total net in higher costs to residential customers from choice since July 2015 is $651.3 million
The AG's report includes a list of the 10 retail suppliers (not identified by name) with the highest average rate and premium versus basic service
The AG's report indicates that one supplier had an average residential rate of 51.47¢ per kWh for the July 2023 to June 2024 period, which is an approximately 35¢ premium over default service
Two other suppliers had average residential rates in the 35¢ to 39¢ per kWh range for the July 2023 to June 2024 period, which reflected a premium of about 20¢ per kWh over basic service
See the AG's report here
The AG continues to pursue a legislative end to individual residential electric choice in Massachusetts
The Retail Energy Supply Association reiterated prior criticisms of the data used in the AG's report, and the use of a comparison of basic service versus value-added choice service
"For years, we have been subjected to these types of reports touting problematic data used in a flawed methodology from consultants the AG’s office pays to substantiate their story to the public," said Frank Caliva, national spokesperson for RESA. "What the report shows is an analysis of products, services and terms that are not comparable."
RESA cited value-added products provided under retail supplier service, such as renewable energy, long-term fixed rate plans, and various bundled services
RESA further said that the AG's report does not take into consideration a number of "significant" factors, such as:
• The differing time periods over which utilities and suppliers purchase energy
• Addressing utility-provided energy charges that are "artificially low" based on indirect cost recovery
• The impact of the war in Ukraine on natural gas prices
• The lingering effects of unpaid electric bills by utility customers dating back to at least 2020 during the height of the pandemic
RESA said that, "An analysis by the My Energy Choice campaign, using data from the Massachusetts energy shopping website and the Commonwealth of Massachusetts, found in 2024, fixed retail electricity rates averaged five cents per kilowatt-hour (kWh) less than the monthly utility price to compare. Additionally, the average rate for retail green energy offers was almost five cents per kWh lower than the utilities' collective monthly average rate."
The My Energy Choice analysis, which uses retail supplier offers posted on Energy Switch MA, said that Massachusetts residential customers could have saved $763 million in 2024 by shopping for a retail supplier
The My Energy Choice analysis reported the following 2024 average prices:
• Utility supply: 16.99¢/kWh
• Competitive retail supplier lowest fixed price offers: 11.79¢/kWh
• Competitive retail supplier lowest green offers: 12.29¢/kWh
The My Energy Choice report notes that, in every month of 2024, there were about 100 to 140 retail supplier fixed rate offers that were lower than basic service
Link to My Energy Choice report
Caliva stated, "The same companies that the AG continues to want to put out of business are the same retail electricity suppliers that the AG, the Governor and other consumer advocates hail as the solution for consumers to save money by buying electricity through a municipal aggregation instead of basic service from the utility. Instead of continuing to release reports with flawed methodology and narrative, let’s agree it’s time to work together and move forward on protecting the Commonwealth’s consumers through sensible reform that doesn’t eliminate customers' right to determine their own energy future."
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AG Says Residential Choice Customers Paid $73 Million More Than Default Service For Latest Annual Period
Retail Suppliers Say Residential Customers Could Have Saved $763 Million In 2024 By Shopping
February 4, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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