Across Massachusetts, the complaints sound similar: A person discovers their electric bills have spiked, and when they look into it, they find that the company providing their electricity isn’t who they expected — instead of a utility like National Grid or Eversource, it’s a third-party provider they’ve never heard of.
These complaints are among hundreds that The Boston Globe and WBUR received as part of a public records request to the state. And for every example of someone who didn’t knowingly sign up for a competitive supplier, there’s another example of someone who signed up for a plan with a low rate, only to have it balloon without warning a few months later.
Despite the political momentum and broad support for the bill, many competitive suppliers and a handful of House legislators are pushing back. They’ve introducedto reform the industry, rather than scrap it. Consumers, they say, should have the right to choose their energy plan. “This has been a 25-year experiment. It’s fair now to conclude on the basis of the evidence that failed to produce value for large numbers of consumers,” said state Sen. Michael Barrett, the Democratic lawmaker who will help lead negotiations on a climate bill later this year. “At some point, you have to throw in the towel.”
"We are in this kind of unique position to have great companies who are willing to actually say, ‘Regulate us more,’ ” said Abby Foster, vice president of policy and advocacy for the Retail Energy Advancement League, an industry trade group that helped Chan write his bill. Environmental advocates and officials say that all eyes are on what Massachusetts does with this market; should it ban the industry, other states might follow.
Many of these companies go bankrupt with little warning, making them hard to prosecute. Many use outside marketing agencies whose sales representatives aren’t well trained or use high-pressure tactics. And many profit from their ability to sign consumers up at one rate, only to suddenly jack up prices later, which they are legally allowed to do.
Eleven other states plus the District of Columbia have similar residential markets. And in every instance where officials have investigated,, said Susan Baldwin, an independent consultant who has produced reports on the competitive supply market for several states, including Massachusetts.