Increase in Retail Supplier Interest in Massachusetts Prompts Calls for New Consumer Protection Rules

With the long-awaited implementation of purchase of receivables and large spikes in default service rates driving new interest among retail suppliers in serving the Massachusetts mass market, consumer representatives are calling for the DPU to enhance customer protections.

In comments concerning a potential deferral of National Grid's basic service rate increase, the Massachusetts Attorney General "urge[d]" the DPU, "to promulgate comprehensive consumer protection regulations to promote fair competition and to ensure that consumers have the information they need to make well-informed decisions."

"Deceptive marketing by some bad actors harms all competitors both because of the misleading representations themselves, and because it hinders customers who shop for alternatives. This difficulty may be hindering the development of a robust retail competitive market in Massachusetts," the AG said.

While the DPU has promulgated various contracting and disclosure rules, the AG said that, currently, the Department’s regulations do not explicitly provide a mechanism for customers to raise consumer protection claims before the DPU.

"While the regulations provide formal complaint procedures for property damage claims, unauthorized switching of service, and 'other' complaints, they only require competitive suppliers to provide an alternative dispute resolution process for complaints 'alleging that an unfair or deceptive trade practice has occurred,'" the AG said

Allowing customers to file complaints with the DPU concerning unfair or deceptive trade practices, "would be helpful because, in most cases, it is not economically viable for an electric customer to pursue a consumer protection claim in court individually," the AG said.

The AG pointed to consumer protection rules being developed in Connecticut and Maine as examples, noting in Maine that a proposed rulemaking includes a requirement that customers must affirmatively consent to the renewal of service if the renewal involves a material change in the terms of service, which explicitly includes a change in rates or rate structure, and advance notification of any variable rates.