​January 18, 2024
​FOR IMMEDIATE RELEASE 
Contact: agoldstein@ninetywest.com

BOSTON — Local, state, and federal leaders came together yesterday to advocate for policy that protects Massachusetts residents from predatory third party electric suppliers. The call follows years of data illustrating that third party suppliers frequently rely on aggressive, misleading tactics and lead to massive consumer overpayment. 

In 1997, Massachusetts deregulated its electricity market, allowing customers to choose between their utility and third party suppliers. But as in other states with deregulated electricity, third party suppliers have failed to deliver promised benefits to residential customers; instead, they often charge exorbitant rates and lean on misleading marketing as well as aggressive - sometimes downright illegal - sales tactics.
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Beginning in 2018, a series of reports by then-Attorney General Maura Healey and current Attorney General Andrea Joy Campbell have documented consistent, significant consumer losses – including $525 million in overpayments between July 2015 and June 2021 – disproportionately impacting low income residents and people of color. 

“Our research in the Attorney General’s Office continues to show that vulnerable residents across Massachusetts are losing money when they sign contracts with competitive electric suppliers. This is an issue of economic security and energy injustice as we continue to see suppliers enrolling disproportionately high numbers of low-income residents and residents of color with false promises of savings on their utility bills,” said Liz Anderson, Chief of the Energy and Ratepayer Advocacy Division at the Attorney General’s Office, speaking on behalf of Attorney General Andrea Joy Campbell. “With Senator Crighton and Representative Moran’s proposed legislation, there is a solution sitting at the State House that must be passed. Attorney General Campbell is proud to support this bill and will continue to push for its passage on behalf of consumers.”

In a recent letter to the Federal Trade Commission, U.S. Senator Edward J. Markey joined with U.S. Senator Elizabeth Warren and Congresswoman Ayanna Pressley (MA-7) to urge regulators to “immediately open an investigation into the unfair and deceptive marketing acts and practices of competitive electric suppliers.”

“As winter continues and competitive electric suppliers across the nation continue to prey on fears of high electricity bills, we must not tolerate business as usual,” said US Senator Markey. “Consumers deserve protection, not deception. The green energy revolution must have a level playing field.”

In the City of Boston, some residents have paid suppliers as much as $300 extra per month compared to the City’s Community Choice Electricity (BCCE) program, at rates as high as $0.60/kWh. The City’s BCCE program offers consumers an alternative to basic utility service, including a 100% renewable option, that reduces costs while maintaining transparency and accountability. 
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“Boston is one of the places where competitive electric suppliers have been most aggressive. These companies aggressively target low-income residents, seniors, in some instances members of the disabled community, Black and brown residents, immigrants, in particular those who don’t speak English as their first language,” said Rev. Mariama White-Hammond, Chief of Environment, Energy and Open Space for the City of Boston. “Many times, we are hearing about these same predatory companies misrepresenting themselves as part of the City of Boston program. I know this to be true because they made the mistake of coming to my front door and telling my husband that they were connected to the City’s program.” 

Rev. White-Hammond continued: “There has been more than enough opportunity for these companies to change their behavior. The fact that they continue to do these predatory practices is a choice, and a choice for which they should be held accountable.”

Across Massachusetts, there are 167 cities and towns with municipal aggregation — and more programs are pending approval from the Department of Public Utilities. A ban on third party suppliers from signing up new residential customers would not apply to  aggregations, preserving consumer choice and contributing to clean energy goals through the many programs that offer renewable options.  

“The evidence is clear: third party electric suppliers are frequently greenwashing through misleading pro-environmental marketing. Suppliers use consumers’ good intentions to jack up the price for a product that hurts consumers without really helping the planet. By contrast, most municipal aggregations offer renewable energy that can save consumers money and advance Massachusetts climate goals,” said Larry Chretien, President of the Green Energy Consumers Alliance.

“In the course of meeting community members and enrolling them in Mass Save programs and low-income community solar, we were reviewing their electric bills and seeing that many were on these harmful third party supply contracts, were carrying a balance, and were not enrolled in discounted rates even though they qualified for them,” said Gabe Shapiro, Co-Founder and Co-Executive Director, Partnerships at All in Energy. “In one campaign in Boston we directly supported 77 mostly low income residents. Many of these families were struggling to pay their bills. Over 40% were carrying a balance. More than half of these families were on third party supply contracts, and on average they were paying 43% more than they would have been if they were enrolled in the City’s Community Choice Electric program. Some residents didn’t even remember signing up for these contracts.”

Shapiro read a statement on behalf of Michelle, a resident from Dorchester who supports banning third party suppliers. “My father, who is an older member of the community, had an agreement with a third party supply company and they were charging him $0.49/kWh. Once the initial agreement expired, his energy bill doubled in price,” said Michelle. “Once my father applied and was approved through the City’s program, his electric bill came down tremendously.”

A bill by Massachusetts State Senator Brendan Crighton and State Representative Frank Moran would ban third party suppliers from signing up new residential customers. The ban would not apply to commercial customers or municipal aggregations. 

“Because competitive suppliers are able to charge whatever rates they want without approval from the state, too many customers get charged more as a result. Many customers don’t know what they’re signing up for, or are even signed up without their knowledge. These tactics are predatory and deplorable. We must put a stop to it,” said State Senator Brendan Crighton. "Our legislation would help these folks by preventing suppliers from entering into new contracts with individual residential retail customers. This will end the patchwork solutions to this pervasive problem and put a stop to these harmful practices once and for all.” 

As the Massachusetts State Legislature moves forward on a large climate package, it has the opportunity to put an end to third party suppliers' legacy of harming Massachusetts customers. Opposing the move are third party electric suppliers and industry associations. Supporting the ban are Attorney General Campbell, Mayor of Boston Michelle Wu, Governor Maura Healey, and many clean energy and consumer protection advocates. 

A recording of yesterday’s virtual briefing is available to interested media upon request, as well as any additional inquiries relative to the third party electric supplier industry.