United Illuminating Standard Service Rate Increase Announced
New electricity suppliers are offering service in the United Illuminating territory in Connecticut as the energy choice market continues to expand offering better price options for consumers in light of a recently announced rate increase by the utility. United Illuminating informed their residential customer base that the standard service rate would increase at the beginning of 2019 from a previous rate of $0.090496 to the new rate of $0.112263. As an energy choice state, Connecticut energy consumers have the option to shop for lower electricity rates from energy suppliers who have been licensed by the State of Connecticut Public Utilities Regulatory Authority. The announced rate increase is expected to increase shopping activity in the United Illuminating service area over the next few months.
The Standard Service Rate offered by United Illuminating serves as a default rate for the generation supply portion of the electric bill; it is the price for power that customers pay who have not opted to shop for a competitive rate. On January 1, 2019 that rate is going to increase by 24% for residential customers in the area, and will first be seen on the United Illuminating electric bills that go out in February. Customers can avoid the severity of the increase by selecting a Connecticut electricity supplier offering a fixed rate below the Standard Service Rate. Fixed United Illuminating electricity rates provide customers with not only savings, but price security. Long term fixed rates can protect customers from potential future price increases on the Standard Service Rate by United Illuminating.
United Illuminating changes their Standard Service Rate twice a year in January and July. The default rate is determined by an auction process prior to the date when the price changes. The new rate that will go in effect on the first of January will be the highest it has been in the last three years. In fact, January 1, 2019 will mark the first time since 2015 that the United Illuminating residential Standard Service Rate will go above ten cents. Uncertainty in global energy markets has many experts believing that there is a higher than normal probability that the price will go up again in July 2019. This would break a streak of four years where the Standard Service Rate in the United Illuminating service area went down in July. While we won’t know for sure what the price will be in the summer until late May when it will be announced, locking in a long term fixed electricity rate will provide certain savings during the first six months of 2019 and peace of mind for the last six months.
Competitive electricity rates in the United Illuminating service area are provided below. All rates are offered by competitive suppliers who have been licensed by the state of Connecticut. Rates are updated on a daily basis. United Illuminating customers who are still on the default Standard Service Generation Rate can save a substantial amount by shopping for a competitive fixed rate.