What Caused Basic Service Changes?
Earlier this year, the DPU investigated why basic service rates were so high. Their discovered that the way utilities lined up winter electricity supplies led to higher electricity rates. For many MA energy customers, their rates were simply way too expensive. But now, DPU has ordered MA electric utilities to make some big changes that could likely affect your electricity bills.
How DPU Changed Basic Service Periods
After the past year’s pricey winter, DPU was tasked with investigating energy services. As it turns out, the most expensive months of the year, January and February, fell in the same service period. So this led to an idea to split the two months up with the hopes of evening out bills.
For this reason, DPU ordered Eversource and National Grid to change their basic service periods. This would split the year’s rates between a February through July period and an August through January period.
Will Basic Service Changes Affect Rates?
This change will undeniably ease energy bill burdens and perhaps blunt sharp price spikes. However, it may not significantly lower MA energy bills because so many New England generators rely on natural gas. And natural gas prices are still volatile.
For example, EIA estimates that MA customers use about 596 kilowatt-hours (kWh) of power per month. Presently, the Eversource basic service rate is 16.078 cents per kWh This means Eversource basic service customers pay around $96 per month on supply charges. But natural gas rates are expected to rise right in the middle of winter and push up residential electricity rates. That’s troubling when you consider that although Eversource has not announced winter rates yet, National Grid is proposing hiking its Basic Service rates to 18.213 cents per kWh.
So locking in low 12 month rates now could save you money when it matters.
Check Out Best 12-Month Fixed Rates
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On the other hand, frequent shoppers and diners might benefit from the Direct Energy Go Green Lights 12 plan. Their 16.89 cents per kWh rate averages to a monthly supply charge of about $100. Renewable energy will power customer homes. And customers can take advantage of the Direct Energy Rewards program. This program offers daily discounts on travel, shopping, and dining as well as chances at gift card giveaways.
Take Advantage Of Changing Rates
It’s hard to predict if basic service changes will lower bills this year. Costs may be simply spread out across the entire year. But if you shop now, you could lock in to savings for the new year. Compare the best rates that cut your monthly bills at https://www.maenergyratings.com.