Utilities are expensive, but utility bills might be even more expensive than necessary if the customer has signed up with a competitive electric supply company or a competitive gas supply company. In Massachusetts, consumers are allowed to choose to buy electric supply from their investor-owned utility (IOU) or from a competitive supply company. Some consumers may also have the option of buying natural gas from a competitive supply company. The utility company will still deliver service and bill the customer, but the competitive supplier will set the price for the electric or gas supply. Competitive supply companies often attract customers by offering low introductory rates for the first few months, but then switch customers to more expensive rates that can be twice as expensive or more compared with IOU prices. Therefore, IOU service is usually a more affordable option for consumers, and consumers who have contracts with competitive supply companies may be able to lower their bills by switching back to their IOUs.
Aggressive salespeople market competitive energy supply contracts by going door-to-door and by telemarketing, and may pressure consumers into contracts based on misinformation and false promises of lower prices. Salespeople frequently claim to be working “with” the consumer’s utility company, and insist that they can sign the consumer up for a lower electric rate if the consumer can show the salesperson a copy of their electric bill. Consumers should be aware that their IOU will not contact consumers about their electric bills in this way and will not ask to see the bill or the account number.
If a consumer has voluntarily or involuntarily signed up with a competitive electric supply company, the consumer has several options:
- A customer who was involuntarily switched to competitive supply should contact the DPU Consumer Division and the Office of the Attorney General at 617-727-8400 to file complaints. In some cases, the DPU can help the customer to get a refund or terminate the contract.
- A customer who intentionally signed up with a competitive supply company but now wants to end the contract can find the name of the competitive supply company on their electric bill. The consumer can then contact the competitive supply company directly and ask to end the contract. If the contract cannot be ended without expensive termination fees, or if the company will not assist the consumer, the consumer can contact their utility company and also file complaints with the DPU Consumer Division and the Office of the Attorney General.
- Customers can contact their IOUs and ask to be added to a “Do Not Switch” list. These consumers will remain customers of the IOU unless they ask to be removed from the list.
- In some instances, there might be legal claims against competitive suppliers who have deceived customers. Contact a legal aid program or other attorney for further information.