Global demand drives winter energy supply prices to historic highs.
“With energy prices at record highs this winter, Eversource is working to connect its customers with the many programs and services available to help manage their energy bill ahead of the January 1 electric supply rate change. While customers are facing rising costs in virtually all aspects of life, the energy company is reminding them of the variety of payment options and assistance programs including Budget Billing, New Start, Discount Rate and other state and federal resources.
“We know how challenging increased energy costs are for our customers who are already frustrated with rising costs for other basic, daily needs, and we want to help them manage their energy bills as much as possible,” said Eversource Executive Vice President, Customer Experience and Energy Strategy Penni Conner. “We’re here to work with our customers one-on-one on ways to reduce their energy usage and connect them with assistance programs, flexible payment plans or other resources to help them manage their monthly bill. We also remind customers they can compare energy prices at Energy Switch Massachusetts and sign up with a competitive supplier for their energy supply if they choose.”
This week, the energy company filed new electricity prices from power suppliers for customers in Massachusetts with the Department of Public Utilities (DPU) that would be in effect from January 1, 2023, through June 30, 2023. If approved, the proposed Basic Service Rate for residential customers in Eastern Massachusetts who receive their energy supply from Eversource would change from 17.9 cents per kilowatt-hour (kWh) to 25.6 cents per kWh, compared to approximately 15.8 cents per kWh last winter. On average, an Eversource residential electric customer in Eastern Massachusetts who uses 600 kilowatt hours of power each month could see an increase of approximately 23% over their current monthly bill – or approximately $46.66 per month – on the supply portion of the bill.
In Western Massachusetts, the proposed Basic Service Rate for residential customers who receive their energy supply from Eversource would change – if approved – from 15.348 cents per kilowatt-hour (kWh) to 21.864 cents per kWh, compared to 13.731 cents per kWh last winter. On average, an Eversource residential electric customer who uses 600 kilowatt hours of power each month could see an increase of approximately 21% over their current monthly bill – or approximately $39.09 per month – on the supply portion of the bill.
While adjustments to other components of the bill are also expected to take effect January 1, 2023, those changes are not yet final and rising supply costs will be the primary factor impacting customers’ total monthly bills. The supply rate change only applies to customers in Massachusetts who receive Eversource’s Basic Service Rate and not those who receive their energy supply from a municipal aggregation program or a competitive supplier, which is a majority of the energy company’s customers in the commonwealth.
In Massachusetts, the energy supply price changes twice a year – January 1 and July 1 – representing the cost that Eversource pays generators for the power that customers use. Eversource only charges customers what it pays generators for producing the power – it does not earn a profit on the cost of electricity.
How much a customer pays will ultimately depend on how much energy is used, their rate category, and weather conditions. All Eversource customers have the option to buy their power from state-approved third-party suppliers or to receive the energy company’s Basic Service Rate. Customers can find out more information about competitive supplier rates at Energy Switch Massachusetts.
As has been widely reported, energy costs continue to rise globally, with regional electric supply prices reaching all-time highs this year due to increased global demand for and the high cost of natural gas, world events, extreme weather, and other issues.
Eversource is encouraging customers who are having difficulty paying their energy bills or want to learn more about what help is available to participate in an upcoming webinar on December 16th at noon. The webinar will include information about protection from service disconnection, programs to reduce unpaid balances with affordable monthly payments, extended payment plans and no-cost energy efficiency programs that can help lower energy usage. Advanced registration is required, and customers can sign up, as well as view a recording of a previous webinar, at www.Eversource.com/billhelp.”