Eversource Rate Increase 2022
Expensive news is coming for Eversource’s CT customers. Not only are winter bills expected to be 30% higher than last year but now Eversource is hiking supply rates further. According the Office of Consumer Counsel (OCC), the increase in electric supply rates takes effect on January 1, 2022. The OCC statement assures CT customers that while the increase does not affect customer’s delivery charge portion, such January rate hikes are normal. For example, Eversource’s rates in January, 2021 were .03093 cents per kWh, which was 37% higher than the July 2020 rates.
However, what’s so alarming is that Eversource’s proposed supply rate increase raises prices from 7.003 cents per kilowatt-hour (kWh) to 11.484 cents per kWh; a whopping 64% spike!
Factors Causing the Rate Spike
Even if the January rate is traditionally higher, why are Eversource rates increasing so much this year? After all the Eversource default rate fell in May 2020. CT customers can look to the natural gas market for the answer. Natural gas is used to generate most of our electricity. Supply rates rise when gas prices do.
Last year, gas prices fell because the Global pandemic reduced energy demand. Fewer businesses and public events were going on and most families stayed home. The diminished profit and demand led to a reduction in oil production. And this led a reduction in natural gas supply.
But now that the country is opening up again, demand is on the rise. And when high demand meets low supply, prices rise.
Compare Electricity Bills
CT Customers want to know how much more they can expect to pay. While exact numbers depend on how much energy is used, we can estimate based on this average monthly bill report. If the average CT home uses 711 kWh of energy per month, then the average supply charge will rise from about $49 to about $81 — or $32 more per month. For some families, this increase couldn’t come at a worse time.
Shop for Better Rates Now
To be sure, the increase paints a grim picture for energy budgets in CT homes. But you may be able to find better rates by checking out third-party energy companies. The electricity rates you find may be better than Eversource’s pending rates and provide additional benefits. Best of all, CT has banned early transaction fees (ETFs), so you can cancel or switch for better deals that might come in 2022.
Just keep in mind, January is less than two months away. So you should act now.
How to Avoid Eversource Rates
While the OCC’s assertion that January’s rates are often higher than July’s, this is a staggering price hike. However, CT customers can get the jump on these rates by shopping for better electricity rates and plans by heading right over to https://www.ctenergyratings.com.