National Grid MA Rates Set to Explode

Energy choice in the state of Massachusetts has been active for the last several years, but for the most part has remained under the radar. Educated consumers who were aware of the choice laws may have participated by locking in a low electricity rate with a competitive Massachusetts electricity supplier or even elected to purchase power derived from renewable resources through the choice market. However, for the majority, energy choice hasn’t been a concern as the competitive rates haven’t offered significant savings off of the local utility default rates; that is about to change in a big way for Massachusetts residences who receive their power from National Grid.

On November 1, 2014 National Grid electricity customers will see the rate they pay for power supply increase by as much as 100%, depending on their rate structure. The 100% increase is not a typo, many National Grid electricity customers in Massachusetts will see their monthly electric bills double due to a rate increase. The rate increase can be avoided, or managed by consumers who search for competitive residential Massachusetts electricity rates as the rate spike will only effect customers on the default basic service rate.

National Grid in Massachusetts offers a default electricity rate for those consumers who have not elected to participate in finding a competitive choice rate. The official name for the default rate is the basic service rate, and it is this rate that will be increasing on November 1, 2014. Basic service customers are either on a fixed rate structure that changes every six months, or a variable rate structure that changes every month.

Massachusetts electricity customers who are on the National Grid basic service fixed rate will see their electricity supply rate increase from $0.08277 on October 31, 2014 to $0.16273 on November 1, 2014 if they do not select a competitive electricity rate plan. The $0.16273 is set to remain in tact through April 30, 2015. Locking in a competitive fixed Massachusetts electricity rate that is lower than the $0.16272 will provide some savings right away, and may protect consumers from another rate increase that could take effect in May of 2015. Customers on the National Grid basic service variable plan do not have it much better as the expected price will get as high as $0.22067 in January 2015


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