Photo by Scott Olson/Getty Image.
By Tracy McCormic
The author is the Executive Director of the Retail Energy Supply Association.
Under the 1999 Electric Choice and Competition Act of former village Paris Glending, Maryland made intelligent options to join other states for reorganization of market to address growing utility rates. Today, 13 states and Colombia districts allow consumers to buy their energy outside single-love, traditional monopoly utility models.
Glendning recently published an op-ed, “Time to make consumer retail energy suppliers accountable.” In this article, the same data set referred to by Glending also shows that restructured states have consistently performed better that remained with vertical utility models. Maryland all-sector electricity prices have increased by only 2.7% from 2008 to 2022, as the prices in monopoly states have increased by 40.3% at the same time. Apparently, competitive markets have benefited all marylanders, both who choose to shop for energy and choose the option to live with the default standard offer service.
More than 500,000 Marylanders, including about 15% of residential energy consumers, bought their energy from competitive electric or gas supplier. This group of consumers chose a product that gives them higher value and improves their requirements than the default option. Sometimes, these customers have chosen to pay more for a product that gives them value certainty or 100% renewable energy option.
Retail Energy Supply Association (RESA) and Intelometry publish a monthly market savings report. In October alone, Maryland had 179 competitive energy suppliers, lower than the price of utility. The report shows that Marylanders could save more than $ 39 million in October by purchasing for the best deal for electricity. These lower offers are listed on Maryland’s Public Service Commission (PSC) MD Energy Choice website, which is a resource by Champion by the Chairman of the Sen Brian Feldman, Education, Energy and Environment Committee.
The goal of the competitive market is not only to offer the lowest priced option, but also to provide an option to consumers, each person empowering the best option for their home or business with the opportunity to make informed decisions on the best option. RSA members show data that educating consumers is the best way to support them.
MDenergychoice.com helps consumers compare products and available rates and also educate people about the difference between a certain rate and a variable plan. Additionally, it can help Marylanders identify long -term contracts options to help residents avail the best available rates as much as possible. To ensure that consumers know about these resources so that they can take informed decisions before purchasing electricity or natural gas from a supplier.
Another way to protect consumers is to implement the law already adopted. RSA has consistently supported PSC’s efforts to implement strict rules and strictly support the enforcement. An example was in the last February when Resa publicly supported the PSC strategy, which was to implement the results to any competitive supplier that does not follow the consumer protection rules.
There is no question that bad actors harm consumers, but the loss is reaching further. It also affects the reputation of the moral third-party energy suppliers working in the Maryland market. RSA supports PSC in taking action, including old, intentional identification of criminals and cancellation of their licenses.
Additionally, the law introduced by the Senator Feldman, and was strongly supported by the RESA, which was passed and signed by former village Larry Hogan. Suppliers have to undergo annual compliance training to display the understanding of laws and regulations applicable to consumer protection. What is more law on top of the current law that has not yet been implemented? RSA would like to implement this training so that we can make bad actors accountable.
A significant concern addressed in the article of Glending focuses on the energy cost. Eliminating retail options in Maryland will not help in decline in rates; If anything, it will give consumers less control over their energy costs. Last year, the Baltimore Gas and Electric Company proposed a 5% rising rates for gas and electricity delivery for three years. On average, the proposed increase will mean an additional $ 31.07 for the customer’s monthly bill to cover the utility expenses.
The BGE currently serves 1.3 million electric and 700,000 natural gas customers. It translates an increase of $ 313 million in electric service revenue by default service utilities for capital expenses in 2024 through 2024 and an increase of $ 289 million in gas service revenue. At a time when the distribution rate in the utilities of Maryland is increasing by hundreds of million dollars, it is not understood to like consumers on a part of their bill.
RSA is stable in its commitment to work with the Commission to ensure that consumers are educated about their options. We encourage PSC to take action from evil actors to protect all customers by implementing the results within our rights, while we promote a permanent competitive market to preserve the power of individuals to choose our energy suppliers.
Re -published