These energy suppliers say they can save you money. Regulators say it’s a scam
These energy suppliers say they can save you money. Regulators say it’s a scam
Massachusetts legislators are considering a bill to enact a first-in-the-nation ban on competitive suppliers selling electricity. Gov. Maura Healey, Attorney General Andrea Campbell and Boston Mayor Michelle Wu all support the bill. But some say the third-party electric supply industry just needs mo...
Yeah, we have these shyster bastards where I live, too. The entire thing is a scam. Think about it: The power lines are owned by the utility company. The generation facilities (at least where I live) are also owned by the same utility company. All of them. There are no third party options, there are no power stations that are independent entities. How then, in any possible way, could any middleman somehow make it "cheaper" to buy power from the vendor you're already buying it from and sell it back to you?
No points for guessing that they can't. All these guys do is get billed on your behalf from your same old power company, then charge you their own added bullshit fees on top of that. They haven't saved anyone in my region a single nickel, ever.
Now the tactic they use is admitting that you might pay slightly more, but they'll switch you to "more green" energy sources to prey on people's environmental sensitivity. Isn't that worth paying a little more for? Too bad this claim is bullshit, too -- There is a very low percentage of renewable energy generation in our region (which yes, is something that needs to change) but what little of it exists is already integrated into the regular power grid and is... you guessed it, owned and operated by the same utility company that already owns the lines and power plants!
There is one notable exception here, which is community suppliers. Lots of cities/towns in MA (more every year) and initiating programs that are basically group buys for the whole town. These plans never claim to guarantee savings but because they have much greater bargaining power they have so far saved everyone lots of money. The two key differences from these shady af private suppliers are that the community programs communicate really transparently (they are required to notify everyone when the plan is starting and also BEFORE any rate changes) and that you can leave at anytime without consequence.
Edit to add: because these are community programs and not private, profit-focused companies, they are obligated to pass along savings directly to the consumer, rather than adding bogus fees to make up the difference and skim off the top.