Shore Community Power

What is Aggregation?

Municipal electricity aggregation, often shortened to “aggregation” is when a town or municipality forms a buying group to negotiate better electricity prices from a supplier. Think of it as a kind of collective bargaining. Businesses and residents can then take advantage of the aggregation rate and in many cases save money.

Is Aggregation Bad?

Absolutely not. It can save customers a lot of money and a lot of uncertainty in their electricity budgets, especially in the initial part of the contract. When that term ends though, the rates can and often do go up – sometimes, significantly. We’re seeing that now in many municipalities in Massachusetts.

How Can I Get Out?

First, check your rate. Maybe the new contract price is still the best you can find. But, if your rate is jumping more than 25-30%, it’s likely a good idea to look around. At Gridwealth, we are happy to provide you with a competitive bid. If it’s a better deal, we can help you switch. Get in touch and one of our energy consultants will walk you through the process.

Is There a Fee to Get Out of the Aggregation?

You are automatically enrolled at the default price. You have to opt out to get off the aggregation rate. The great news is that you can do that anytime and there is no fee or penalty to do so.

Do I have to Change My Electric Utility?

No. Lots of folks don’t know this but your electricity bill has two major parts: delivery and supply. The delivery part covers the cost of the wires to connect your building to the electrical grid (those poles and transformers aren’t free). Supply is the actual electricity itself. Under state law, you can choose who supplies your electricity.