Massachusetts Regulators Crack Down on Electric Supply Scams
Massachusetts regulators are calling for a major overhaul of the state’s competitive electricity market after years of deceptive marketing, skyrocketing prices, and financial losses—particularly for low-income residents. The Department of Public Utilities (DPU) has launched multiple investigations over the past decade, culminating in a new push for a "market reset" to better protect consumers.
Key Findings:
The Attorney General’s latest report reveals that residential customers have overpaid by $651 million in the past nine years due to misleading sales tactics and inflated rates.
Predatory marketing, especially telemarketing and door-to-door sales, has disproportionately harmed vulnerable communities.
Automatic renewals and variable pricing structures have led to unchecked price increases, leaving consumers with unexpectedly high bills.
Proposed Market Reset:
All enrollments must go through the state-run Energy Switch website to ensure transparency and informed decision-making.
Eliminate automatic renewals, requiring consumers to actively re-enroll to avoid hidden rate hikes.
Require monthly reauthorization for variable-rate plans, limiting them to customers who fully understand the risks.
Tighter controls on renewable energy claims to prevent “greenwashing” by suppliers.
Read the full presentation here.