Many residential electricity consumers in the Boston area will see a large increase on their electric bills in the early part of 2018. Eversource Energy, the company responsible for delivering power to all properties in the city of Boston and surrounding suburbs, recently announced that they will be increasing their default rate for electricity supply by 22.3%. The rate increase will be effective at the start of the new year.
Formerly named NSTAR, the utility changed its name to Eversource Energy two years ago in a branding push. Eversource Energy services customers in both eastern and western Massachusetts, Connecticut, and New Hampshire. In eastern Massachusetts the company delivers power to just over 935,000 residential customers. In addition, they also provide default electricity generation service to about half of their customers. All Eversource Energy customers have the option to shop and switch to a competitive energy supplier thought the Massachusetts energy choice program.
Customers in Massachusetts who do not switch energy suppliers pay a default price for electricity through Eversource Energy. Eastern Eversource Energy changes the default price twice a year on the first of the month in January and July. In the second half of 2017 the default rate has been $0.10759. On January 1, 2018 the rate will shoot up by 22.3% to $0.13157. The 471,000 residential customers who are still on the Eversource Energy default rate can avoid the increase by shopping for competitive electricity rates in the eastern Eversource Energy market. Current rates offered by competitive suppliers are well below the new default price.