Massachusetts Residential Customers Face Substantial Price Increase
Many energy consumers in Massachusetts are unaware of a massive price hike that is getting ready to go into effect that will greatly increase the size of their monthly electricity bills. Residential customers of National Grid will experience a rate hike of 40% for their power supply. The rate hike will effect all residential customers who are on the basic service rate, which includes all consumers who have not switched to a competitive electricity supplier.
As an energy choice state, Massachusetts consumers have the ability to shop for lower electricity rates offered by licensed competitive energy suppliers. The competitive suppliers offer rates for the generation component of the electricity. Utilities such as National Grid continue to act as the regulated power delivery company. Customers who haven’t shopped and purchased competitive power pay the basic service rate offered by National Grid. The basic service rate is a default rate for electricity generation supply and is determined by an auction process effected by wholesale power prices. After the completion of the auction process, basic service rates stay in tack for six month periods. On November 1, 2015 a new period will begin causing the price to rise substantially for those consumers who are still on the default basic service rate structure.
Currently National Grid residential customers in Massachusetts are paying $0.09257 per KWh for their power supply. That price will increase to $0.13038 on November 1, 2015 which equates to a 40% price increase that will be seen on National Grid electric bills starting in late November. Residential customers in the National Grid service area have enjoyed the lower $0.09257 rate since May of this year. The 40% increase is going to surprise many consumers who do not keep up with energy market trends. While some consumers have complained that Massachusetts energy choice is bad because it adds another product on the list to shop for, those who have taken advantage have been able to reduce their electric bills month after month. It is important to understand that the purpose of basic service rate is to act as a default price for those consumers who are unwilling to take the necessary time and shop for better pricing options.
Customers who are willing to shop for lower Massachusetts electricity rates will be pleasantly surprised. There are many electricity suppliers who are competing with each other for new National Grid customers, offering rates that will save basic service paying customers substantial amounts on their electric bills. In order to sell electricity in Massachusetts a supplier must be licensed by the Department of Public Utilities, which minimizes the risk of consumers receiving unworthy offers. All electricity rate offers listed below are a direct comparison versus the National Grid basic service rate. Customers can avoid the November 2015 rate hike by enrolling in a competitive rate plan.
