"Competitive electricity suppliers": A gimmick or cost-saver? (Boston: condo, brokers)

[Strannik33]

A have a small condo in Metrowest, where my daughter lives. Everything in the condo is electric (by Eversource). Somehow the electric bill jumped this month 10-fold (I'll relate the details in another thread). This prompted my renewed interest in the so-called "competitive electricity suppliers," the companies that claim to save consumers money. One of those happened to cold-call me today.

I always thought they were sham companies, as I could not see how any savings would be achieved. It's not like these companies generate their own electricity; instead, they piggyback on the main provider (Eversource). But then why does the state allow them to exist? Neither the Consumer Reports nor the Checkbook provide any ratings or comments on those, which seems curious. And yet the National Grid provides the lengthy list of these "suppliers," as well as many brokers "helping" in their selection:

https://www9.nationalgridus.com/mass...plier_list.asp

The state has a web section for these suppliers: https://www.mass.gov/information-for...ricity-brokers

Finally, a report says that ‘competitive electricity suppliers’ drive up consumer costs by some $500 million annually, a charge their trade group denies:

https://www.wcvb.com/article/report-...costs/36006363

So, did anybody here looked into this and compared the rates from some of those companies? Are they cheaper than those from the Eversource or not?

[timberline742]

I've explored them at different times. Used them a couple of times. Didn't really find much if any savings. The delivery charges were still set by Eversource or Natural Grid or whoever. Maybe if you could lock one in at the right time and the right year it would work well.

I'm interested in what others have to say.

[wolfgang239]

Eversource hasn't announced its basic service rate yet for winter. Given fuel supply issues it will be higher than normal if I had to guess. The competitive suppliers are close to $0.13/kWh so they know what is coming. If you are lucky you can opt in to a municipal aggregation via your city or town, they negotiate rates for years at a time so that will likely be the cheapest for most folks.

In normal times I always shop them. Electric heat and an EV can add up quickly with just a few fractions of a cent.

[Cuzzant]

Not from the NE area, but one thing to look out for is variable rates. My SIL signed up for a 6 month contract with a new provider. The first 2 months were fine. Once the winter weather came a knocking, her bills rose 3 fold over the previous year, and her usage was the same. Seems the provider increased Kw prices for the winter, and my SIL suffered the consequences.

There was nothing she could do, since the contract stated that the rates were variable.

[BostonBornMassMade]

If you get a fixed rate you can save marginal money but after 6 or 12 months they will silently hike your rate up to something unfair unless you call to lock in your fixed rate per kilowatt. To be fair, they warn you when you switch. Then never remind you again.

[mmyk72]

I always shop around w diff electric companies. You only get to change the Supply portion of the bill, the delivery side is set in stone. But you can save a few cents per kWh and it can add up to over $100 per yr.

Make to to watch out for cancellation fees- always and only sign up if there is none.

Also watch the length of the terms- make sure to switch to another provider 2 months from end date. it takes that long to make the switch from 1 provider to another. If you stay pass the contract term, the rate always jack up - that's how they make money off you.

In the pass, providers hand out sign on rebates... I've gotten GCs for $100. But those are rare now. I follow the same principle as above even w the bonuses.

[WestieWhitie]

That community choice thingamajig Boston allegedly negotiated was allegedly cheaper, but all the clipboard bandits running around asking to see your eversource bill and promising centered green new clean energy that will save money and endangered migratory snails will have you taken to the cleaners.

[mojo101]

You guys may have heard of what happens in TX back in February where we were hit hard by winter storm.
There is a company based in CA which offers selling wholesale electricity if you become a member and pay like 9.99 a month.
Some TEXANS signed up and saved a lot of money in summer.
Then this horrible winter storm ,price of natural gas went way UP,so these customers have a 4-5 figures bill which they cant afford to pay.
I think this company went bankrupt.