Retail electric suppliers could have saved residential customers more than $204 million in the first two quarters of 2019, the Retail Energy Supply Association (RESA) announced today.
RESA, one of the nation’s leading trade association representing competitive retail energy suppliers, made its announcement by singling out Massachusetts. Data on the Bay State shows residential energy customers are benefiting from state’s competitive retail energy market, receiving greater savings options, increased customer service and value, the announcement said.
“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, RESA 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, shows that retail electric supply companies routinely offered dozens of rates below the Massachusetts basic service price. During the first quarter of 2019, January through March, there were 547 offers below Massachusetts price to compare, a potential market savings during that period of $106,728,628
For the second quarter of 2019: April through June, 599 offers below Massachusetts price to compare, potential market savings, $98,055,479
RESA further said that data from the U.S. Energy Information Administration (EIA) shows that consumers in states that have undergone restructuring have saved significantly compared to those in monopoly states. The data shows that in Massachusetts from 2008 to 2017 electricity prices for all sectors decreased by .6%, while during the same period prices in monopoly states increased by 18.7%.
While electricity prices for residential customers increased by 7.7%, they were less than one-third of residential prices in monopoly states that saw an increase of 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,” the announcement said.
RESA’s White said that while cost is an important factor, “it is important to note that retail electric suppliers are offering even more than potential savings.”
“Customers are also receiving greater value for their energy dollars,” said White. “From renewable energy, to fixed price plans, even loyalty rewards, from a customer standpoint, it’s a win-win.”
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