New Report Shows Massachusetts Customers Could Have Saved Hundreds of Millions in 2024 Through Competitive Energy Supply
March 28 2024 - 1:28PM
Business Wire
This is the first Massachusetts study that
incorporates cost data from winter period in 2023/24; Electric
customers could have saved $1.7 billion over the past two years if
they had enrolled in competitive supply instead of basic utility
service
A new report conducted by Intelometry shows that customers
enrolled in an energy plan with a competitive electric supplier
could have saved hundreds of millions of dollars since 2022 rather
than choosing basic utility service. In addition, competitive
supplier data collected for 2024 shows that from January to March,
if all residential customers selected the lowest cost retail
supplier, customers would have saved more than $238 million during
that period compared to basic utility service.
This is the first report to utilize and analyze cost data
covering the winter period from 2023-2024. The report was
commissioned by NRG, a national Fortune 200 company and the leading
competitive supplier of energy and home services in
Massachusetts.
The comprehensive study of Massachusetts electric rates outlined
in the report also found that if all electric consumers in
Massachusetts had chosen the lowest cost competitive supplier in
2022 and 2023, the potential savings when compared to basic utility
service would have been approximately $1.7 billion over the two
years. A review of proprietary data provided by NRG related to its
subsidiary Direct Energy, a competitive supplier operating in
Massachusetts, shows that Direct Energy customers saved $15.3
million dollars over the years 2022 and 2023, when compared to
basic utility service.
“Our study makes clear, a large majority of choice customers
have saved significantly over monopoly utility rates since 2022,
and that this trend is expected to continue,” said Guy
Sharfman, Vice President of Market Analytics at Intelometry.
“It’s clear that Massachusetts electric choice provides residential
customers with significant savings opportunities over monopoly
utility basic rates in the Commonwealth.”
“Massachusetts’ utility customers have recently seen some of the
highest electric rates in the country, but fortunately there was
relief for customers in the form of the electric retail market,”
said Mike Rombach, Vice President and General Manager of NRG
Home. “This report proves what retail customers already know - that
choosing a retail electric supplier over the past two years has
saved families hundreds of dollars on their bills. The last thing
we should be doing during this moment of high costs is eliminating
this choice for Massachusetts consumers and forcing people to live
under monopoly utility service.”
Among the highlights from the report:
2022
- 84% of residential choice customers saved money over monopoly
utility service.
- Savings totaled nearly $370 per choice customer.
- Collective residential choice savings was approximately $420
million.
- If all customers selected the lowest cost supplier available,
savings would have topped $1 billion for the year.
2023
- Direct Energy residential customers collectively saved nearly
$9.9 million over basic utility service.
- If all residential customers had signed up for Direct Energy
products in 2023, collective savings would have been over $705
million for the year.
- Direct Energy customers saved $241 in 2023 compared to basic
utility service.
2024
- Competitive supplier offer data collected for 2024 shows that
from January to March, if all residential customers selected the
lowest cost retail supplier, customers would have saved more than
$238 million in just the first three months of 2024, compared to
basic utility service.
- The data shows that at least 71% of offers were below basic
utility service rates, with a savings average of between 25% to 41%
depending on month and utility.
- Even when green products are included, at least 63% of all such
offers were below basic utility service rates.
A full copy of the report can be found here.
About Intelometry
Intelometry enables the energy transition through its advanced
technology solutions, market expertise and unique approach.
Intelometry’s end-to-end back-office solutions enable retail
suppliers the ability to streamline their internal processes,
evaluate new market entry, provide data points for developers and
demand response services while supporting their clients day to day
needs. Intelometry’s client base includes a broad range of energy
suppliers including IOU’s, GPO, private sector, municipalities,
solar developers and community aggregations.
About NRG
NRG Energy is a leading energy and home services company powered
by people and our passion for a smarter, cleaner, and more
connected future. A Fortune 500 company operating in the United
States and Canada, NRG delivers innovative solutions that help
people, organizations, and businesses achieve their goals while
also advocating for competitive energy markets and customer choice.
More information is available at www.nrg.com. Connect with NRG on
Facebook, Instagram, LinkedIn and X.
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version on businesswire.com: https://www.businesswire.com/news/home/20240327414937/en/
Jeanie Davey 267-240-3047 jeanie.davey@nrg.com
Kevin Ready 617-823-1809 kready@ctpboston.com