NEW REPORT: Massachusetts’ Average Residential Utility Electric Rate Was 31% More Than Retail Energy

January 28, 2025

Customers had the potential to save up to $763 Million in 2024 collectively by shopping for competitive offers

BOSTON –– A new analysis of Massachusetts residential electric rates reveals competitive energy suppliers offered an average lowest monthly fixed rate in 2024 that was five cents a kilowatt hour (kWh) less than the collective average monthly price to compare rate charged by the seven utilities, including Eversource and National Grid –– a cost savings of 31 percent. Additionally, rates for green energy –– electricity with green provisions exceeding the state minimum –– offered by competitive energy suppliers averaged 4.7 cents/kWh cheaper than the collective average utility rate –– a cost savings of 28 percent.

With an average energy use of 603 kWh a month for a household in Massachusetts, customers who enrolled with a competitive energy supplier in 2024 would have saved an average of $31 a month on their electric bills.

The analysis was conducted by the Retail Energy Advancement League (REAL) using offers posted on the state shopping website, EnergySwitchMA.gov, and comparative utility rates provided by the Commonwealth of Massachusetts. On average, Massachusetts residents had 114 monthly fixed rate options to choose from that were less than supply rates offered by Massachusetts utility service providers. If all residential energy users had switched to the lowest monthly retail offers, they could have collectively saved up to $763,037,771 in 2024.

“Without energy choice, consumers are handcuffed to the rates their utility providers want to charge them,” said Chris Ercoli, president and CEO of the Retail Energy Advancement League. “Having the ability to shop for your own energy –– and the type of energy you want supplied –– frees consumers of utility privilege that holds them hostage because of their zip code. As we continue to see increases in daily costs to live, retail energy is delivering alternatives to Massachusetts residents and opportunities to save.”

As of June 2024, more than 425,000 residential customers were enrolled with a competitive energy supplier. Approximately 111,000 enrolled in a new contract between January to June of last year.

A December 2024 report by the U.S. Energy Information Administration identified Massachusetts as having the third-highest residential electricity price in the nation in 2023. Massachusetts is also the third-highest importer of electricity. Because the Commonwealth consumes twice as much electricity than it produces, utilities purchase electricity from the regional wholesale energy market and distribute it to homes and businesses.

“Massachusetts electric utility providers are going to the energy market to purchase electricity and sell it back to consumers,” Ercoli continued. “Energy choice allows those same consumers to go to a market and shop themselves for cleaner and low fixed-priced alternatives.”

Efforts to close the residential retail market in Massachusetts were quashed last year by elected leaders who recognized the detriment of a market closure and harm it would energy customers. Market closure legislation would have banned Massachusetts energy consumers from signing up with a competitive retail electric supplier starting this month. 

“Closing an energy market is a disservice to the energy consumers of that state,” Ercoli said. “The priority should be to enhance the market with innovations, efficiencies and improved consumer protections.”

More than 5,000 Massachusetts energy consumers have contacted their state representatives fighting to protect their energy choices and sharing why they choose to shop. 

“My choice of an alternative energy source is saving me about $200 a month,” said Elizabeth Brown of West Bridgewater. “A difference much appreciated by this 85-year-old widow.” 

“I cannot afford electricity through National Grid! My competitive supplier provides a rate that I can afford while providing a roof over my family and putting food on the table,” said Isabelle Parker of Athol. “If I am forced to go with National Grid then I will struggle to provide other life necessities to my family.”

REAL is continuing to work with the state legislature to maintain customer energy choice and support reforms that further protect consumers, including Rep. Tackey Chan’s bill HD.659 and Sen. Patrick O’Connor’s bill SD.1519.

REAL Choice