Maryland Senate OKs consumer protection bill for residential energy customers

ANNAPOLIS, Md. (AP) — Maryland would create consumer protections for residential customers who opt to buy electricity from retail energy suppliers, under a bill approved by the state Senate on Friday, though critics say it will hurt competition and chase energy companies out of Maryland.

The Senate voted 33-14 for the bill, sending it to the Maryland House, where a similar bill has been introduced.

Maryland deregulated its energy market about 25 years ago in response to high energy bills, but supporters of the legislation say that failed to lower prices.

Sen. Malcolm Augustine, who sponsored the bill, said the measure is needed to protect residential customers from deceptive practices by some suppliers, who send people door-to-door teasing lower energy rates that lock people into complicated agreements leading to higher prices, particularly in low-income areas.

About 300,000 Maryland energy customers pay roughly $150 million more on their energy bills under the contracts in 2022, Augustine said.

The bill would put a price cap in place that is designed to prevent residential customers from being charged above a standard offer of service, which would use a 12-month average to determine the price. Opponents contend the measure ultimately amounts to reregulating the energy market, but Augustine said the bill is designed to prevent energy suppliers from taking advantage of customers.

<bsp-list-loadmore data-module="" class=«PageListStandardB» data-gtm-region=«READ MORE» data-gtm-topic=«No Value» data-show-loadmore=«true» data-gtm-modulestyle=«List B»> <bsp-custom-headline custom-headline=«div»> READ MORE </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> Maryland revenue estimates drop about $255M in two fiscal