At the Boston Climate Action Network, we believe everyone deserves access to clean, affordable, and reliable energy. But for too many Massachusetts residents, misleading marketing and deceptive sales tactics from third-party electricity suppliers have resulted in confusion and higher utility bills instead of savings. That’s why BCAN is supporting efforts to strengthen consumer protections and stop energy scams that cost families hundreds of dollars each year.
What Are Third-Party Electricity Suppliers?
In Massachusetts, residents can choose to purchase electricity supply from their utility company, their city or town, or a competitive electricity supplier. Third-party energy suppliers are private companies that sell electricity contracts directly to residents. These private companies often market themselves through door-to-door sales, phone calls, mailers, and online advertisements, promising lower rates and savings.
While some consumers may see short-term savings, many contracts include variable rates, confusing terms, automatic renewals, or hidden fees that can lead to unexpectedly high bills. These plans can steer residents away from more stable and affordable options provided through local municipalities.
Why This Matters
While these companies often promise lower rates and savings, many households end up paying more than they would have through their utility’s standard electricity supply service. The impacts are not felt equally. Older adults, residents with limited English proficiency, and low-income communities are often targeted by aggressive marketing tactics and experience some of the highest costs.
As a result, Massachusetts families lose approximately between $200-$700 a year on third-party suppliers compared to utility basic service and Boston Community Choice Electricity, respectively.
Families should not have to navigate confusing contracts or misleading sales tactics to keep their energy bills manageable.
Third-party suppliers also advertise enhanced renewable energy benefits, like offering 100% renewable energy. But they often charge inflated prices for this energy and do not guarantee this energy is adding to the renewable energy on the grid.
Take Action
That’s why BCAN is calling to ban third-party suppliers from scamming residential customers. Legislation to do this is being debated in the Massachusetts State Legislature right now. Call or email your State Legislators now to ask them to stop energy scams today.
We also advocated for the successful creation of Boston Community Choice Electricity, a public alternative to Eversource and third-party supply. Boston Community Choice Electricity (BCCE) is a City program that provides more renewable energy right to your home with lower, more stable rates. Sign up for Boston Community Choice Electricity today.
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