In 1997, the Massachusetts Legislature passed the Electric Industry Restructuring Act, creating a competitive energy market for the Commonwealth and its residents. In this restructured market, power generators bid the electricity they produce, which is then purchased by utilities, competitive energy suppliers, and other buyers. These buyers, in turn, sell the electricity to commercial, industrial, and residential customers through the retail energy market. The Massachusetts Department of Public Utilities (DPU) regulates the competitive retail energy market.
Electric utilities are still responsible for the transmission, distribution (poles and wires), and reliability of the local energy supply. They receive a guaranteed rate of return approved by the Massachusetts Department of Public Utilities (DPU) to manage those assets.
Electric rate data from February 2025, sourced from the Massachusetts state shopping website for electricity (Energy Switch Massachusetts), revealed that each electric utility territory had at least one offer from a competitive electric supplier that was cheaper than the utility rate for that territory. Potential savings for customers that were enrolled in the lowest fixed rate offer from a competitive electric supplier range from 2% to more than 15%, with a statewide average savings of approximately 10%.
In 2024, Massachusetts residents had on average 114 monthly fixed rate options to choose from that were less than supply rates offered by Massachusetts utility service providers. Customers who shopped could have saved 31% or 5 cents a kilowatt-hour (statewide average) on the supply portion of their electric bill.
Customers who shop for their electricity and enroll with a competitive electric supplier can also benefit from value-added products, including time of use discounted rates, home efficiency tools and electric vehicle charging support. Additionally, competitive energy suppliers offer a multitude of green energy and 100% renewable options to power your home or business.
In 2024, legislation was introduced to ban competitive electric suppliers from working with Massachusetts customers. Fortunately, that legislation was opposed to prevent the energy market from closing.
The 2025 legislation also includes new attempts to close the retail energy market in Massachusetts. The Retail Energy Advancement League (REAL) is advocating against taking energy shopping away from customers and denying them their ability to choose a product that is best for their household and budget.
Some members of the General Assembly are standing up for energy choice in Massachusetts and have introduced legislation (House Bill 659 and Senate Bill 1519) that will enhance the retail energy market and the customer shopping experience by reforming regulations and adding new ways to protect customers. REAL supports these legislative actions
Help protect your energy choice in Massachusetts by participating in the My Energy Choice Campaign. Without customer voices sharing the benefits they receive from shopping for their electricity, state leaders will continue to push to close down the energy market leaving customers with no option for electricity other than their utility company. Click the button below to get involved and protect your energy choice!
Competitive electric suppliers directly serve more than half a million customers –– residential, commercial and industrial –– throughout Massachusetts. Municipalities that choose to aggregate, or purchase electricity in bulk for residents and businesses at lower prices than the local utility price, buy their electricity from a competitive electric supplier allowing customers to benefit from the retail energy market.
Nearly 70% of Massachusetts electric load is served and supported by competitive electric suppliers that either work directly with a customer or sell electricity to a municipality.