National Grid Massachusetts Rate Increase 2017 Update

National Grid electric bills in Massachusetts are going to be substantially higher this winter for customers who have not selected a competitive supplier. According to the most recent data released by the Massachusetts Department of Public Utilities, the higher National Grid electric bills will effect just over 600,000 residential customers. The cause of the the change is a result by an adjustment in the generation supply price that National Grid charges to their customers who have not selected a competitive Massachusetts electricity supplier.

Formerly divided into two separate companies – Massachusetts Electric Company and the Nantucket Electric Company – National Grid now delivers power to just under 1 million residential customers in Massachusetts. All of their customers have the ability and right to shop for competitive electricity rates. Those that do not pay a default rate charged by National Grid. This default rate changes three or four times a year and fluctuates around the wholesale energy markets.

On November 1, 2017 the National Grid default rate in Massachusetts will rise 34.4%, and will stay in effect through April of next year. The current price of $0.09432 will jump to $0.12673. Roughly 39% of customers in the National Grid service area have selected a competitive electricity supplier, and as a result will not be effected by the November rate increase. The remaining 61% of customers can avoid the rate increase by shopping for lower electric rates from electricity suppliers who are licensed by the state of Massachusetts (see below).