This is the first report to utilize and analyze cost data covering the winter period from 2023-2024.
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.”
“It’s clear that Massachusetts electric choice provides residential customers with significant savings opportunities over monopoly utility basic rates in the Commonwealth.”
Recommended : Untraditional Ways To Discover Tech Talent And Promising Software Projects
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.
Latest HRtech Interview Insights : HRTech Interview With Tommy Barav, Founder And CEO At TimeOS
[To share your insights with us, please write to pghosh@itechseries.com ]