Massachusetts Variable Electricity Prices Set for Roller Coaster Ride
Over the last month participation in the Massachusetts electricity choice market has spiked sharply due to a large increase in National Grid’s fixed default electricity supply rate that went into effect on November 1, causing some customer’s bills to double. National Grid customers who are on the variable default rate are about to see similar electricity price increases, and as a result are being encouraged to shop for low National Grid electric rates in Massachusetts. Competitive electricity companies and the state of Massachusetts have been educating consumers about the higher electricity prices to come, however a large number of customers remain on the default rate service which will cause electric bills to drastically increase over the next few months.
Residential customers of National Grid Massachusetts who do not choose a competitive electricity company pay a default rate for their power supply. The default paying customers have a choice between paying a fixed rate that changes every six months, or a variable rate that changes on a month to month basis. However, even though the variable rate changes every month, it is known what that rate will be during the six month interval that the fixed default rates are announced. For example, customers can see what the variable rate will be from now through the end of April 2015, which is when the current fixed rate will end.
The default variable rate increase has already started. National Grid Massachusetts variable paying customers saw their electricity price rise by 33% on November 1, 2014 from what it had been on October 31, 2014. These customers were paying a rate of 7.882 cents per KWh in October, and now in November are paying 10.492. This increase will be seen on the December National Grid electric bill which will represent charges for the power consumed in the month of November.
Unfortunately this is not the end of the higher electricity prices that will cause electric bills for National Grid customers to drastically increase if action is not taken in the form of shopping for a lower electricity rate. The National Grid variable rate will increase on December 1, 2014 to 16.706 cents per KWh. The new December rate will be 61% higher than the November rate, and 115% higher than the rate was in October. The rate will get as high as 22.67 cents in January 2015, which will be more than three times the rate was in October 2014. Customers on the National Grid variable price structure who do not take part in shopping for residential Massachusetts electricity rates will see their electric bills triple during this period. The risks are real as the price increase has already begun, but for many consumers they will not believe it is happening until those higher electric bills arrive in the mail.
We have collected some of the better competitive rate offers for National Grid Massachusetts residential customers. The offers below are good for both default fixed and variable rate customers. The switch process in Massachusetts can take up to a month as National Grid can only make the switch on the customer meter read date. In addition, a period up to 15 days in advance of the meter read date is needed for the switch to occur. If you are still on default rate service, the sooner you switch onto a lower competitive rate the better.
