BOSTON – Last week, Massachusetts Senate President Stan Rosenberg (D-Amherst) sent a letter to the Department of Public Utilities (DPU) to open proceedings on whether to require electric suppliers to issue refunds to customers who were charged excessive “rate recalculation” fees after switching their electric company this winter.
In the letter, addressed to DPU Commissioner Angela O’Connor, Rosenberg wrote that “Many ratepayers who switched from basic service to a competitive supplier this past winter were shocked that their bills were recalculated retroactively, and in many instances for amounts that were hundreds of dollars higher than expected” further explaining that “Ratepayers should not be required to pay for service they did not receive or rates that have been deemed unfair. We shouldn’t stick working families with enormous and unfair bills at a time when most are just starting to break even after years of struggle.”
“The rate recalculations were unfair, and DPU should find a way to ensure those affected by these enormous bills are refunded accordingly,” said Rosenberg.
The Rate recalculations were originally allowed by DPU due to concerns that competitive suppliers would “game” the system by switching customers on and off default service as wholesale rates varied. However, following a recent order that the costs to customers outweighed protections for suppliers, DPU reversed the policy without addressing whether suppliers would be required to refund the recalculated rates back to consumers, leaving many on the hook for enormous bills.
