Understanding your electric service
Every Massachusetts electric bill has two main parts:
- Supply is the cost of the electricity itself, which you can buy from your utility or another supplier.
- Delivery covers the cost of bringing electricity to your home, maintaining the wires, and keeping the system running. Your utility (e.g. Eversource, National Grid, Liberty, or Unitil) is always responsible for delivery.
Tip: Think of “Delivery” as the food delivery service and “Supply” as the food – the first gets it to you, the second is what you receive and eat!
Your electric supply options
Massachusetts has a deregulated electricity market, meaning you can choose who supplies your electricity. Your options are listed below. More details on these options are in our Selecting the Best Supply Option for You article.
Your Utility (basic service)
If you don’t choose another option, your electricity is automatically supplied by your utility at their Basic Service rate, which changes every 6 months for residential customers. The utility does not make a profit on this supply charge; the utility just passes the cost of the electricity onto you.
Third-Party Supplier (also called competitive suppliers)
A private company that sells electricity directly to consumers. They may offer special rates or renewable energy products, but prices can fluctuate often. They make a profit on the electricity they sell to you. Many customers may sign up for one price but end up paying higher prices as their contract ends, and another begins automatically. If you’re on a third-party supplier contract, you may be spending too much money on electricity. Read our Avoiding Energy Scams article to find out more.
Municipal Aggregation (often called community choice electricity
A program run by your city or town to purchase electricity on behalf of residents, often securing better, more stable rates and/or more renewable energy compared to the utility’s Basic service.
Finding your supplier and rate on your bill
Your utility bills will list both who your supplier is and what rate you’re paying.
- Look for the “Supply Services” or “Supplier” section of your bill.
- Your supplier’s name will be listed there, along with your rate in cents per kilowatt-hour (¢/kWh).
