Local Leaders Endorse Campaign to Stop Predatory Third-Party Electric Suppliers in State

Special to the Record

This week, 14 municipal leaders from across the Commonwealth announced their support for the Campaign to Stop Predatory Electric Suppliers, urging state lawmakers to protect residents and prioritize energy affordability by passing legislation to ban third-party electric suppliers from the residential electricity market.

Among those leaders were Boston Mayor Michelle Wu, Lynn Mayor Jared Nicholson, and Chelsea City Manager Fidel Maltez.

Support from mayors and city managers provides growing momentum to the campaign. In April, more than 50 organizations, representing seniors, minority business owners, faith leaders, public health, climate and environmental justice organizations, as well as consumer and legal advocates, endorsed H.3534/S.2255, An Act relative to electric ratepayer protections, and backed regulatory action at the Department of Public Utilities (DPU).

“I want to thank the Mayors and City Managers who have thrown their support behind this effort, because we all want to make energy affordable,” said Larry Chretien, Executive Director of Green Energy Consumers Alliance. “This campaign highlights the simplest and fairest way of saving ratepayers’ money — banning retail electricity suppliers.“Consumers have two much better options. The best is municipal aggregation if it’s available in their city or town. The next best is to receive energy supply from their local utility.”

Maltez said the municipal leaders will not stand by while predatory electric companies take advantage of their residents, who work hard to make ends meet and are being hit with thousands of dollars in electricity bills every month.

“As a City, we owe it to our residents to call out these attempts by electric companies to trap people, like you and me, in confusing, overpriced contracts and to advocate for the freedom to choose a more trustworthy, stable, and predictably priced electricity supplier, such as our Chelsea Electricity Choice program,” Maltez said. “The City of Chelsea is an advocate for consumer choice, and we join the Attorney General’s Office in its call for Massachusetts to take further action to ban third-party electric suppliers from the residential marketplace.”

As a city, Boston’s focus is on making sure residents have access to affordable and reliable energy sources that they can trust, according to Wu.

“Bostonians deserve energy they can count on without any surprise costs and unexpected bills,” Wu said. “This campaign is about looking out for our neighbors and building a brighter and healthier future for Boston.”

With these third-party suppliers, Nicholson said Lynn residents become enrolled in overpriced energy contracts and are forced to pay a huge cost.

“In April 2024, Lynn households lost nearly $40,000 to third-party electric suppliers,” Nicholson said. “That’s why I’m proud to stand with other mayors and stakeholders to call for a statewide ban and ensure every resident gets fair, transparent, and affordable electric service.”

Gardner Mayor Michael Nicholson said that for too long, predatory electric suppliers have taken advantage of hardworking families across Massachusetts — promising savings and delivering skyrocketing bills instead.

“Cost of living and climate change are top concerns for residents in Malden and across the Commonwealth,” said Mayor Gary Christenson of Malden. “Unfortunately, predatory companies are selling the promise of cheap, clean energy to lure residents into deceptive contracts that lock people into rates they can’t afford and prevent them from benefiting from trusted alternatives. Without action by the state legislature, an estimated 20% of Malden households will remain stuck on these plans without the freedom to choose from trusted supply options.”

Mayor Katjana Ballantyne of Somerville said predatory electric suppliers have overcharged and misled residents for years, with the harm falling hardest on seniors, renters, and immigrants.

Mayors and city managers stated they routinely hear from residents hit with hundreds of dollars in electricity costs who hadn’t realized they were even enrolled with a third-party supplier. A 2024 joint investigation by The Boston Globe and WBUR  captured stories of residents’ encounters with suppliers and the resulting harm. And data released by the Attorney General affirms what city officials and ratepayers are hearing from residents about the cost burdens of contracting with a third-party electric supplier.

The most recent report from the Attorney General’s office found that between July 2023 and June 2024, Massachusetts consumers enrolled with third-party suppliers paid $73.7 million more than they would have for basic service. Over the past nine years, total consumer losses have exceeded $650 million.

The campaign builds on efforts supported by Governor Maura Healey, Attorney General Andrea Campbell, Boston Mayor Michelle Wu, former Governor Charlie Baker, and dozens of organizations from the last legislative session, who pushed for a ban on third-party electric suppliers but saw that language excluded from the final energy bill.

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