Retail energy consumers will see stronger protections under newly enacted legislation
Maryland Gov. Wes Moore (D) on Thursday signed into law a bill that will bolster consumer protections — especially those for low-income residents — against deceptive practices in the state’s unregulated retail electricity market.
“For far too long, Maryland residents have been overpaying for their energy and have been left to fend against retail electric suppliers,” said Gary Meltz, executive director of Power for Tomorrow (PFT), an organization that advocates for sensible regulation of electric utilities.
“Today’s achievement took courage and dedication from members of the General Assembly, Gov. Moore, consumer advocates and concerned citizens, who stood up against an aggressive lobbying campaign led by bad actors who were committed to taking advantage of Marylanders,” Meltz said.
Specifically, Senate Bill (SB) 1 will prevent energy retailers — also known as third-party suppliers — from gouging customers who choose their electricity and gas services over the state’s utilities.
SB 1’s chief sponsor, Senate President Pro Tem Malcolm Augustine (D-Prince George’s), has called the measure “a significant consumer protection and cost of living bill.” The identical House Bill 267 was sponsored by Maryland Del. Brian Crosby (D-St. Mary’s), the vice chair of the State House Economic Matters Committee and chair of its utilities subcommittee.
Electricity retailers have called SB 1 an overreaction, saying any consumer fraud that’s occurred has only happened in a miniscule percentage of the marketplace. They say the new law will quash competition in Maryland.
However, according to AARP Maryland State Director Hank Greenberg, deceptive practices have plagued the state’s energy market for far too long.
“For years, we’ve heard stories about the struggles of our neighbors who were unfairly overcharged by retail energy suppliers. But that will soon end,” Greenberg said this week. “The signing of this measure by Gov. Moore heralds a new era of accountability and consumer protection, with an immediate impact of delivering $200 million annually back into the pockets of Marylanders.”
Greenberg pointed out that the legislation will benefit ratepayers who choose a retail energy supplier by adding crucial price protections, ensuring that retail energy remains affordable for all consumers; and will lay out clear guidelines for obtaining a sales license, with strict penalties for those who engage in fraudulent or predatory practices.
The bill also imposes new standards for “clean energy” marketing and offers, promoting sustainability and transparency in the energy market; and will expand oversight by the Maryland Public Service Commission to help ensure that consumer interests are protected at every step, he said.
“Electric deregulation doesn’t mean lower power bills. Before Senate Bill 1, retail electric suppliers were free to raise their rates higher than the regulated utilities, and they always did,” said PFT’s Meltz. “This important legislation ensures retail suppliers are only able to participate in the market if they are offering real cost savings.”
The Maryland Senate version of the bill passed 33-14 on March 8, while the House version passed 99-39 on March 29. The Maryland General Assembly passed the far-reaching reform bill on April 8 and sent it to the governor, who signed it into law on May 9 along with dozens of other pieces of legislation.
