Know the risks before you sign up
Third-party suppliers sometimes offer tempting deals — but many use misleading sales tactics that can lead to higher energy bills over time. If you’re looking for help deciding between suppliers, check out our article on Selecting the Best Supply Option for You.
What to watch for in contracts
- Introductory rates: Contracts may have low introductory rates but may increase significantly after a few months.
- Length of price guarantee: Third-party suppliers typically purchase power on shorter cycles than utilities and municipal aggregations, so prices change fast, often rising dramatically.
- Automatic renewal contracts: After the initial contract ends, it usually automatically renews at a different price, often much higher than the original contract!
- Cancellation fees and terms: These fees are often high, and cancellation requires a long period of advance notice.
- Renewable energy claims: Make sure the “green” power is backed by legitimate sources of clean energy. Look for MA Class I renewable energy projects (also known as MA Class I Recs) to ensure its high quality, clean power. MA Class I renewable energy projects are located within Massachusetts, or a neighboring New England state. Renewable energy that is in MA Class I Recs include solar photovoltaics, wind, biomass, hydroelectric, geothermal electric, solar thermal electric, municipal solid waste, landfill gas, tidal, wave, anaerobic digestion, and fuel cells using renewable fuels.
Common scam tactics
- Someone comes to your door saying they are with your electric company and asking to see your bill. The utilities do not do this.
- Someone called you saying they are with the electric company and asking for your utility account number. The utilities have your account number already and will not call to ask for it.
- Letters with bright red text or threatening language, making it sound like you have an issue with your utility bill.
- A promise of a gift card or other incentives if you switch your electricity supply to them.
How to protect yourself
- Do not share your utility account number unless it is for a service you requested. Think of it like a credit card number and always be sure you know who you are giving it to and why.
- Check mailers to ensure they have your utility company’s logo, correct address, and phone number.
- Call your utility company’s number on your electric bill if you have any questions or doubts.
- Report energy scams and to protect others:
- The Massachusetts Attorney General’s Consumer Advocacy & Response Division at 617-727-8400
- The Department of Public Utilities Consumer Division at (617) 737-2836
How to cancel a third-party electric contract
If you’re already enrolled with a third-party supplier and want to switch back to your utility or join a municipal aggregation program:
- Review your contract for cancellation of terms and fees.
- Contact your supplier directly — keep a record of the date, time, and who you spoke to.
- If you need additional assistance, contact the Massachusetts Attorney General’s Office to learn more about competitive supply or file a complaint about a competitive supplier
- (617) 727-8400
- Explanation of competitive suppliers
- Competitive suppliers FAQ
