For years, the City has been advising electricity customers to be wary of marketing by competitive electricity suppliers, and not to confuse the City’s Newton Power Choice program with these third-party supply offerings.
At the end of March, the Massachusetts Attorney General’s office released a new competitive electric supply report showing that over the last decade, Massachusetts residential customers who switched to competitive supply collectively paid over $738.7 million more on their electric bills than they would have paid if they stayed on their utility’s basic service.
The AG’s report further indicates that the total consumer loss per month in Newton was $111,131, and the average monthly per household loss was almost $30, adding up to $360 per household on an annual basis.
By contrast, on average over the seven years that the Newton Power Choice program has been in place, electricity customers have saved money.
Data suggest that the issue with competitive supply in Massachusetts is not limited to a few rogue actors, but is driven by widespread, moderate overcharging. Suppliers charging 90% premiums represent less than 5% of total customer losses; in contrast, those charging 10% to 30% above the basic service rate represent more than 51% of the total financial loss.
We hope you participate in Newton Power Choice for a long-term, stable electric supply price. But equally important, don’t enroll in competitive electricity supply without carefully reviewing the supplier’s contract terms. And if you want to switch from a competitive supplier to Newton Power Choice, please first check whether you have an early termination fee, which in some cases may be exorbitant, if you make any changes; if you don’t know, call your supplier to find out. Reach out to energycoach@newtonma.gov if you need help determining whether you’re on Newton Power Choice or competitive supply and/or need help making the switch.
Ann Berwick is the City of Newton’s Co-Director of Sustainability.