NH Eversource Electric Bill Savings

Saving money on the monthly Eversource electric bill has never been as easy as it now is for New Hampshire citizens thanks to the successful results of energy choice deregulation. Through state legislature, New Hampshire electricity choice laws allow consumers to shop for the power generation supply component of their electric bill from alternative electricity companies. Instead of being forced to purchase power from a regulated utility, New Hampshire Eversource customer can shop for lower electricity prices at desired terms. Customers who are adapting to New Hampshire electricity choice are discovering that they can drastically reduce their Eversource electric bill.

Having competition in business is an important market component that ultimately benefits the consumer as competing firms are forced to trim profits while enhancing the products they sell. Nowhere is that lesson in economics more apparent than in the New Hampshire electricity choice market where customers are seeing savings north of 30% versus the old utility default price. Most consumers are unaware of how the rate they pay for electricity is derived, especially consumers in regulated markets where they become familiar with the mundane process of receiving a disorganized monthly utility bill with a total amount that they must pay or have the lights turned off in their home.

The reality is that electricity is traded on a 24/7 market where utilities and competitive suppliers purchase and trade blocks of power with the goal of selling it to consumers through the monthly electric bill. It is very similar to the business relationship of the bank and homeowner when purchasing a home. The bank buys the home with cash, and then allows the homeowner to make monthly mortgage payments to the bank with a premium in the pricing. In the case of electricity, the utility or competitive supplier is purchasing a block of power through futures contracts for the consumer and then selling it back to the home dweller through the electricity bill with a small retail adder.

Regulated utility customers, or customers who live in states or markets where they do not have the ability to shop for competitive power, pay a rate for the electricity through their local utility. The local utility has a team who purchases the power on the wholesale energy market for their customer base, and then charges a retail adder that is approved by the state utility commission. However, the main component of the charge is going to be determined by the buying strategy of the utility. In a market environment where there is no competition, the utility has no incentive to make sure that they are doing a good job for their customers as they don’t have to worry about losing customers to another company. In contrast a competitive market keeps electricity suppliers on their toes, always looking for ways to cut costs and purchase wholesale electricity at the right time so that they can pass on the low electricity prices to their customers.

In recent months alternative New Hampshire electricity suppliers have been able to offer NH Eversource customers substantial savings on their electric bills by taking advantage of buying opportunities in the wholesale energy markets. In order to market services to customers, alternative New Hampshire electricity suppliers need to be licensed by the New Hampshire Public Utilities Commission. If a New Hampshire Eversource customers chooses to purchase power from a company who is offering a rate that is lower than the utility default rate, then the customer will experience the difference in savings on their monthly Eversource electric bill.