Consumer Group Claims Retail Supplier Rates "Almost Always" More Expensive
October 12,2016
In comments on proposed guidelines governing retail supplier enforcement proceedings in Massachusetts, the National Consumer Law Center (NCLC) told the Massachusetts DPU that electricity purchased from competitive suppliers, "was almost always more expensive" versus basic service during the summer of 2015 and, "usually more expensive" during winter months.
"We are further concerned that electricity purchased by a consumer from a competitive supplier is often more expensive for the consumer than the cost of basic service," NCLC said
"Preliminary analysis by NCLC indicates that, during 2015, electricity purchased from competitive suppliers was almost always more expensive (>90% of the time) for the consumer during summer months, and was usually more expensive during the winter months. Those who switch are generally worse off," NCLC said
NCLC did not cite specific data that it reviewed for its analysis
NCLC further said:
"Our observations are consistent with the recent analysis by the Connecticut Office of Consumer Counsel, which showed that during the month of July 2016, consumers paid more for electricity purchased from competitive suppliers at least 80% of the time, and possibly more frequently depending on which utility territory is studied. We also note that the New York Public Service Commission has issued two orders this year to address the high prices and unfair practices of competitive suppliers in that state, and these endeavors continue despite the procedural issues which have paused the Commission's efforts. These examples from neighboring states illustrate the widespread nature of the problems faced by low-income utility consumers. While not the immediate subject of this docket, we hope the Department will itself investigate the extent to which residential customers who switch to competitive supply end up worse off relative to basic service, and, if this is so, take steps to help consumers avoid entering into supplier agreements that are not beneficial to them."