Natural gas heating customers could see 22-24% price hike
Natural gas heating customers could see 22-24% price hike
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Natural gas heating customers could see 22-24% price hike
Massachusetts electricity customers could be facing a steep increase in their winter bills, National Grid warned on Wednesday.
Citing the high price of natural gas used in generating the power, the utility company said winter electricity rates taking effect on Nov. 1, will be sharply higher than they were last winter.
“In total, the monthly bill of a typical residential electric customer using 600 kWh (kilowatt-hours) will increase from $179 in the winter 2021-2022 season, to approximately $293 for the winter 2022-2023 season,” National Grid said.
That’s a 64% increase year-over-year.
National Grid says most of the increase is driven by electric supply rates and that the company has “worked to keep the delivery portion of the bill essentially flat.”
Eversource, the state’s other major electric utility, said it plans to file proposed rate changes with the Department of Public Utilities around mid-November, for changes to take effect on Jan. 1. Last winter, the Eversource proposed increase was about 25%.
Rates are also seasonally adjusted for natural gas and National Grid said the average Boston Gas residential heating bill will increase $50 or 22% and the average Colonial Gas residential heating customer will see an increase of $47 or 24%, compared to rates last year.
“With energy costs rising due to global conflict, inflationary pressures, and high demand as the winter heating season approaches, National Grid understands the impact this increased financial burden can have on our customers and communities, especially when we are all experiencing increased costs for other goods and services,” the company wrote in a statement. “National Grid buys energy on behalf of our customers from the wholesale market and passes through those costs without any markup or profit, so customers pay what National Grid pays for that energy.”
Eversource said its proposed natural gas rates, scheduled to take effect on Nov. 1, would increase prices by about 38% or $86 for customers in the former NSTAR Gas service area and 25% or $61 for those in the former Columbia Gas territory.
“These increases are mainly driven by the current high supply cost of natural gas worldwide,” Eversource said.
To help customers, National Grid announced a “Winter Customer Savings Initiative” that highlights energy-saving tips and payment assistance programs. Eversource also shared its link to energy efficiency programs.
Massachusetts also offers the Low Income Home Energy Assistance Program, which helps eligible households pay a portion of their winter bills.
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