BOSTON (AP) — State utility regulators have eliminated a rule that required electricity suppliers to recalculate the bills of customers when they switch from their basic service to a competitor.
Secretary of Energy and Environmental Affairs Matthew Beaton said yesterday that lifting the provision will allow ratepayers to save costs by switching to a competitive supplier, without facing a retroactive charge.
The recalculation rule was put in place in 2000 when the state began to encourage competition among suppliers. It prompted complaints from consumers, some of whom received hefty retroactive electric bills.
In many cases, customers had been paying fixed average monthly bills during the winter months and when they switched they were billed for the actual cost of the electricity they had used.
“Consecutive harsh winters, combined with natural gas infrastructure constraints, have caused residents across Massachusetts to endure a spike in winter basic service rates,” said Beaton. “This ruling by the Department of Public Utilities will allow ratepayers looking for the most cost-effective energy supply to switch to a competitive supplier without facing the burden of a bill recalculation charge.”
