Beat electricity rate hikes in Massachusetts


Massachusetts Residential Electric Rates

Massachusetts has a deregulated electricity market, which means you can choose your electricity supplier. This is good news in a state where the utility company National Grid recently increased rates by 26 percent for residential and 30 percent for commercial customers.

Bottom line, sticking with the utility is not always the best option for residents of the Bay State. For example, the current price to compare for the utility Eversource Energy is 13.588 cents per kilowatt hour. In the zip code 02115, choosing a deregulated energy supplier can get you a rate as low as 9.89¢. That’s a savings of  almost 30 percent.

By choosing the right supplier based on budget, term length, and lifestyle, Massachusetts customers can find a plan that works for them. More than 500,000 Massachusetts residents have already switched energy suppliers. Enter your ZIP code above to start searching for the best electricity rates near you.

Get to know your options for energy providers in Massachusetts

Energy choice in Massachusetts got its start in 1997 with the Electric Industry Restructuring Act, which gives residents the opportunity to shop for the supply portion of their energy bill. The Act, as it is commonly known, was enacted to introduce competition among energy suppliers to drive down electric rates in Massachusetts.

Despite its more than 20-year history, deregulated energy is still a mystery to many in the state. The truth is, behind the complicated language, deregulated energy can be a simple way to save money on your electricity supply each month. Here, we’ll answer your questions about energy choice and the sign-up process to give you the confidence to compare plans. In a nutshell, here’s the process:

  1. Enter your ZIP above.
  2. Find an electricity supply plan that’s right for you.
  3. Sign up with your new provider.

Take advantage of your power to choose and control your electricity rates.

What is energy choice?

Energy choice is the opportunity to decide for yourself what company is supplying your energy.

The energy service delivered to homes is split up into three parts: supply, transmission and delivery. Energy supply describes the cost of energy purchased from the source of generation. This portion of your energy service makes up the bulk of your bill and is the part you can choose. Energy transmission involves the transportation of energy from the source to your utility’s distribution center. From there, the energy is delivered from the utility to your home.

What is the role of the utility?

No matter who you choose to supply your energy, transmission and delivery services will be carried out by your utility, which owns the infrastructure delivering energy to your home – such as power lines and meters. Along with these services, the utility maintains the infrastructure and restores power to your home in the event of an emergency.

In Massachusetts, your utility will continue to bill you for your energy supply, transmission and delivery services regardless of your chosen energy supplier. Once you start energy supply service from your alternative supplier, its billing information will appear on your utility bill in a separate part of the page. This creates a smoother transition for customers new to energy choice.

How are energy rates in Massachusetts determined?

Energy rates from your supplier and utility are determined by similar factors – with some exceptions. The factors that might impact your energy rates in Massachusetts are weather, energy availability, local regulation and supplier.

  • Weather can positively or negatively influence energy prices based on the principle of supply and demand. For instance, in warmer climates, energy prices may rise in the summer with the increased use of air conditioning. On the other hand, high winds may drive down prices of wind-energy for regions with turbines.
  • Energy availability can also heavily influence energy rates. If the supply of fuels goes down due to troubles at the power plant, energy prices will rise.
  • Regulation, such as that from the Public Utility Commission, affects utility customers because the regulative body is in charge of approving rates set by the utility. Rules may change depending on your location, but rates are most often approved by the PUC twice a year.
  • Suppliers can influence energy supply prices because some companies may charge more for their extra benefits such as customer service or online tools.

What plans are available in Massachusetts?

Energy supply prices by your utility are subject to change multiple times a year due to the volatility of the energy market. If you choose an alternative energy supplier, you have a choice between this ever-changing plan, known as a variable-rate plan, and a fixed-rate plan with rates that stay the same for the duration of your agreement.

What should you know about energy plans before you decide?

  • Variable-rate plans allow you to gamble with the price of energy and receive lower prices if the wholesale price of energy drops. However, if the price of energy rises drastically due to energy use spikes a variable-rate plan may seem less attractive.
  • Fixed-rate plans may seem higher than variable-rate plans at first, but will not change for the duration of your agreement. This means that even during high energy-use months, you will not be affected by rate spikes.

Can I receive energy from renewable resources?

Yes. When you purchase a green energy plan, you can offset your home’s carbon footprint by up to 100 percent with green energy certificates. With these green energy certificates, your supplier helps fund green energy projects in your area.

How do I sign up?

Choose Energy can help lead you to your new energy supply plan in minutes. Compare Massachusetts electricity prices today and find a plan that works best for you. Here’s how to sign up:

  • Once you’ve chosen your supply plan, enter the application form.
  • For this step, you will need to punch in your contact information, address and utility account number.
  • No need to schedule a technician for installation. After completing your application, your utility company will be notified of the change and start your alternative supply service at the beginning of your next billing cycle.

Other questions? Visit our FAQs.

(Last updated 6/17/2019)

  • "Competition is always good, and it was time to part ways with my current supplier. I have a very energy efficient home that is totally electric, and the time has come to get the best electric rate possible."
  • "Yes. Price savings."

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