Massachusetts Attorney General announces variable rate contracts violates regulations[VIDEO]

Transcript

In a recent statement, the Massachusetts Attorney General announced that variable electric rate products that set prices based on market conditions, "discretion," or other vague descriptors violate regulations.

According to the Attorney General, under a managed variable rate plan, the customer agrees to an electricity supply agreement of a certain term, but the provider only discloses what the customer will pay for electricity for just a small a portion of the agreement's duration. For the rest of the contract, the price is subject to the provider's discretion.

The Attorney General has labeled this as an unfair sales practice, since it doesn't give consumers any details on exactly how the provider will determine price changes after the initial agreement is made.

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