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YOUR RENEWABLE ENERGY OPTIONS
Restructuring: Past, Present and Future
Though Massachusetts citizens gained the right to choose their electricity supplier in 1998, there are currently very few electricity options available for residential consumers- green or otherwise.
If you have chosen to keep your distribution company as your supplier, and have not switched since 1998, you are called a 'standard offer' customer. If you have moved or switched suppliers since 1998 and have then gone back to you distribution company you are called a 'default service' customer.
Standard offer was designed to allow consumers time to transition into the new electricity marketplace. As mandated in the restructuring legislation, standard offer customers are currently receiving below market electricity rates. The rate reduction will gradually decrease over time and will eventually be eliminated in March, 2005 when all customers will be put on default service and pay market level prices for electricity, unless they choose a competitive supplier.
Why Are There So Few Choices?
Since Massachusetts’ consumers currently pay so little for electricity generation, it is difficult for competitors to offer any attractive alternatives. The lack of current options is partly due to the fact that it is easier for consumers to remain with their current electricity supplier than to switch to a competitive supplier. It takes expensive marketing efforts to convince consumers to switch from the status quo and competitive companies (especially green power suppliers) must be convinced that there is enough interest in their product before wanting to offer it in our state.
To learn more about restructuring: Click here to view the state energy office’s Electric Industry Restructuring Consumer Education Page.
What Can Massachusetts Consumers Expect in the Future?
It is likely that consumers will see a broader selection of electricity options in 2004- 2005. By that point, electricity rate discounts will have started phasing out, and the market uncertainty that has followed electric industry restructuring will hopefully have diminished significantly. Green electricity suppliers will then have a greater incentive to offer options in Massachusetts.
