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New research shows Massachusetts residential energy customers are seeing the benefits of the state's competitive retail energy market receiving greater savings options and increased customer service and value. The Retail Energy Supply Association (RESA), the nation's leading trade association representing competitive retail energy suppliers, today released new data that shows retail electric suppliers could have saved residential customers more than $204 million in the first two quarters of 2019.
"Two decades ago, both Massachusetts lawmakers and voters decided consumers should have the right to choose their electric providers so that they could have access to all the benefits retail suppliers offer," said Matt White, Retail Energy Supply Association President. "This research not only shows that the benefits are certainly there, most importantly, it shows that they are reaching the people they were designed to reach–residential customers."
A RESA analysis, conducted by Intelometry, Inc., a retail energy systems and data provider that specializes in retail energy markets and operations, reveals that retail electric supply companies routinely offered dozens of rates below the Massachusetts basic service price:
First Quarter 2019
January – March: 547 offers below Massachusetts price to compare
January – March potential market savings = $106,728,628
Second Quarter 2019
April – June: 599 offers below Massachusetts price to compare
April – June potential market savings = $98,055,479
Further, data from the U.S. Energy Information Administration (EIA) also shows that consumers in states that have undergone restructuring have saved significantly compared those in monopoly states. The data shows:
In Massachusetts from 2008 to 2017:
- Electricity prices for all sectors decreased by 0.6%. But over the same period, electricity prices in monopoly states increased by 18.7%
- Electricity prices for residential customers increased by 7.7%. However, over the same period, electricity prices in monopoly states for residential customers increased by 22.3%
- If Massachusetts had not allowed residential retail competition and residential prices had followed the same percentage changes as the monopoly states, Massachusetts consumers would have paid $5.4 billion more in the same time period.