National Grid to Keep Massachusetts Electric Rates High Until At Least Summer 2024
National Grid recently announced and implemented an steep increase on their electricity supply rates for both residential and commercial customers. Not only will the higher electricity rates effect customers this winter, but we now know that the higher rates will remain in tact through at least the end of July 2024 and could go even higher after that if wholesale energy markets to not stabilize.
Higher rates mean higher National Grid electric bills for all customers in Massachusetts who receive their power from the utility. As an energy choice state Massachusetts consumers have the ability to shop for lower and more competitive Massachusetts electricity rate plans. However, customers are still forced to receive power delivery from their local utility company. National Grid and Eversource are the major electric utility companies in Massacusetts and provide service to the majority of homes and businesses.
National Grid November 2023 Residential Rate Increase
On November 1, 2023 National Grid increased their Basic Service Rate for residential customers by 29%. The previous rate of 14.115¢ per kWh that had been in effect since May 1, 2023 skyrocket to the new rate of 18.213¢ that will remain in effect through the end of July of next year.
Residential electricity customers of National Grid who are on the Basic Service Rate have seen tremendous volatility over the last several years in a post-Covid world. Since May of 2021, their price for electricity has seen a low of 9.707¢ to a high of 33.89¢ experienced from November 2022 through the end of April 2023.
While the recent rate increase is still below the historic high rate of 33.89¢, for many National Grid customers the current rate of 18.213¢ is too high to maintain their current energy consumption trends, and thus the higher price is causing families to have to cut down on their energy usage and experience a lower standard of living.
National Grid November 2023 Commercial Rates Rise
Business customers in Massachusetts are not fairing much better. On November 1, 2023 businesses on the commercial Basic Service rate saw the price they pay for electricity increase from 13.393¢ to 17.262¢ representing a 28.9% increase on energy expenditure that many businesses simply cannot afford.
Since May of 2021 small and medium sized businesses who receive their power from National Grid, and who are the Basic Generation Service fixed rate have seen extreme volatility with pricing as low as 8.440¢ (May 2021) to a high of 32.28 (November 2022).
How Do I Lower My National Grid Electricity Bill?
Despite the incredibly high electricity rates facing National Grid customers there is a solution to lower the rates so that the monthly electric bills are significantly less. The Basic Generation Service rates only affect those customers who are not on a competitive electricity plan with a third party supplier.
As an electricity choice state, all Massachusetts consumers have the option to shop the competitive market and negotiate their own electricity price deal. The Basic Generation Service rates which have increased so much are just the default rates that National Grid charges to their customers who have not shopped the market for lower prices.
Customer can use energy shopping search engines, like electricrate.com, to find lower fixed rates than the default rates being offered by their utility. In addition to saving money right away, customers will also reduce the extreme price volatility that has been experienced in recent years in the energy markets.
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