When a utility hikes rates, it affects everyone. Especially when those rates are for something as basic as electricity. That’s why when both Eversource and UI increased their summer supply rates last week, it caused a lot of buzz. Fortunately for consumers, those rate increases won’t stick around very long. According to PURA, the rates will be back down starting July 1st. That will still leave your electric bill higher than it is now, but significantly less than it was last year or even the previous summer.
The two main portions of your electric bill are the generation charge (the cost to procure energy) and the distribution and transmission charges (the cost to get that electricity to your home). PURA can push back on the delivery portion of your bill, but it has no control over the generation portion. As a result, you can shop for the best energy rates with competitive suppliers, who buy power at wholesale prices that are lower than your utility’s standard service generation rates.
Those rates are revised every January and July based on the cost Eversource and UI pay for electricity. They are a pass-through to consumers, meaning they don’t contribute to the companies’ profits. The rate increase is due to the price of natural gas, which has spiked because of Russia’s war in Ukraine. That’s a big reason why the AARP petitioned PURA to reconsider this rate increase.
If you decide to stay with your utility, you can check out the available rates on Energize CT’s online rate board. Currently, there are suppliers offering rates on the board that are much lower than UI and Eversource’s summer rates. However, the terms of those contracts can be tricky — many have auto-renew clauses that could force you to pay a higher rate if you don’t cancel your contract before it expires.
If you’re considering switching to a third-party supplier, be sure to carefully review the terms of your contract before signing up. And don’t forget to change your supplier before the end of your term if you want to keep saving. The process is easy with united illuminating ct and data shows that seven out of 10 Eversource and United Illuminating customers who switched have saved money. That’s a good enough reason to shop around! And remember, if you need help with your utility bill, the AARP is here to help. You can find all of our resources for lowering your bills here. And don’t forget to sign up for eBilling so you can start saving today! You can also visit our ui customer service page to learn more about payment plan options, COVID-19 assistance programs, and bill forgiveness. Alternatively, you can also visit an authorized UI payment location.Continue Reading