National Grid Electric Rates Spike
National Grid’s customers have bad news coming around the corner. Rates are spiking to budget-breaking levels right before the cold winter months. Many confused electricity customers are suddenly scrambling to shop for the cheapest electricity rates before this rate kicks in. To help customers make better informed choices, let’s tear into how National Grid electric rates could rise 300%.
New Basic Service Electric Rates
Last week, National Grid requested to hike their basic service rates from 11.491 cents per kWh to 33.891 cents. These new rates would kick in just before winter begins, lasting from November 1 to April 30, 2023.
To put that into context, in 2020, MA customers used an average of 602 kWh per month. At current rates, an average supply charge of about $69. Keep in mind that most homes use MORE electricity in the winter to stay comfortable. So, with the rate hike, customers face winter bills jumping over $204 per month in just their supply charges.
Attorney General Responds to Electric Rates
According to Energy Choice Matters, the state’s Attorney General requested the Department of Public Utilities (DPU) to consider ‘reforms’ to the electricity supply procurement process. One reform would be changing the time that that utilities line up their supply. That would mean procuring 50% of the power supply every 6 months. By laddering rate increases, customers would feel less pain, lessing the sudden impact of a single monolithic rate hikes.
Shop Before National Grid Rate Hike
Right now, the best thing National Grid default customers can do right now is shop the best electricity providers. Last month we posted about how you can shop for electricity rates. Several of Massachusetts’ energy companies are offering plans that will be much cheaper and could last you through the winter. But you must shop right now because their rates will probably increase in time, too.
Right now, NRG Home’s 6 Month Electric Choice plan charges 18.90 cents per kWh. Which equals an average monthly charge of about $113. Plus there’s no early termination fee, so you can switch at no cost if an even better deal comes around.
Consider National Grid Electric Rates
The proposed National Grid rates took many MA customers by storm. But the Attorney General has acted fast to push for intense review and potential reforms. But until we know more, it’s a great idea to consider electricity rates shopping to avoid upcoming rate hikes.
You can learn more about other ways of saving money and energy by comparing rates and plans at https://www.maenergyratings.com.