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Regulator's Staff Further Details Proposed Limits On Auto-Renewals
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Staff of the Massachusetts DPU has shared further details concerning certain aspects of Staff's proposed new customer protections governing auto-renewals
See background on Staff's proposed auto-renewal customer protections here
As previously reported, Staff's proposal would provide that, for customers not on a voluntary renewable product or a time-varying rate (TVR), automatic renewals would be permitted under the condition that the renewal price shall not exceed the basic service price in effect during the first month of the renewal.
Staff has now clarified that Staff proposes that, as part of the auto-renewals which are permitted, any fixed-price product which is eligible for auto-renewal, under the previously reported terms, may only be automatically renewed onto another fixed price, for which the term does not exceed the term of the initial contract
Regarding Staff's proposal that the auto-renewal price not exceed the default service rate in effect during the first month of renewal, Staff said, "Staff notes that the reference to the 'first month
of the renewal' is intended to serve as an
example of how a benchmark for automatic
renewal prices could be determined."
Staff further said of its straw price benchmark, "Staff recognizes that the proposal must address the
scenario in which the 'benchmark' basic service price is
significantly higher than the prices in effect during
recent pricing periods."
Staff
intends to discuss this price benchmark further with stakeholders.
As previously reported, Staff proposed that, for customers currently on a voluntary renewable or time-varying rate (TVR), the customer must "respond affirmatively" to auto renewal notification(s) in order for the supplier to continue service to the customer at the quoted renewal price without the renewal price being subject to a price cap.
Staff has now clarified that if a voluntary renewable/TVR customer does not affirmatively opt-in to renewal, the permitted auto renewal must be onto a non-renewable/non-TVR product, with the new price not permitted to exceed the benchmark default service price
As previously reported, Staff had noted that, if the supplier does not provide an auto-renewal at a price which does not exceed basic service, then the supplier may drop the customer to default service, or auto-renew the customer on a compliant price
Staff clarified that a retail supplier remains able to seek to re-enroll the customer onto a price higher than the basic service rate at the time of contract end, but such re-enrollment would require specific customer action and authorization, and would be subject to the proposed requirement that the re-enrollment must occur through the Energy Switch MA site (consistent with Staff's previously reported proposal that all enrollments shall be accomplished through Energy Switch MA)
The DPU's retail market review proceeding (19-07), in which Staff made the auto-renewal proposal, was opened to address the residential market, though an original Notice of Investigation specifically asked whether the previous proposals under consideration should also apply to the small C&I market.
Staff's presentation slides with respect to automatic renewal do not explicitly state that the renewal proposal is limited to residential customers
However, another section of Staff's presentation slides, concerning interim steps (which include similar proposed protections for auto renewals) is specifically limited to residential customers
Docket 19-07
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May 14, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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