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Wednesday, December 19, 2018

State report: Marylanders overpaying by nearly $55 million for electricity, gas from using third-party suppliers

(Click on the image for Ethan McLeod's Baltimore Fishbowl report)

  • We’re nearly two decades out from the moment Maryland lawmakers decided to deregulate the state’s energy markets in hopes of boosting competition and driving down prices for consumers. A first-of-its-kind, state-commissioned report confirms what some observers already figured: Many Marylanders are getting swindled on their rates by third-party suppliers.
  • The report, published this week by the Maryland Office of People’s Counsel, concludes that based on the advertised rates of third-party electricity and gas suppliers—ones that aren’t the main provider for a coverage area, such as BGE here in Central Maryland, or Pepco in the D.C. area—consumers are paying roughly $54.9 million more for their energy than if they simply went with their assigned utility’s supply.
  • That loss comprises $34.1 million in residential electricity expenses, and $20.7 million in residential gas expenses. Broken down among the 438,020 households who’ve signed up with third-party suppliers, that translates to about $169.38 per year.