Public Benefits Charges Push Up CT Standard Offer Prices

CT Standard Offer Price Rise Coming

Things are getting harder for CT consumers shopping the best electric rates. That’s because starting July 1, new charges will push up CT standard offer prices. So, if you’re paying Eversource or UI for your energy instead of shopping, your monthly bills to these CT electric companies is rising. But what is causing these charge increases and what can you do about it? Let’s dive right away into the latest info about the CT public benefit charges and how they could affect standard offer rates.

Why Standard Offer Rates Will Rise

First of all, it has to be noted that supply costs are going down. For example, Eversource supply costs are about $40 less than they were for the first half of the year. Despite this, however, both Eversource and UI standard offer customers will see their bills rise.

This is all because of a new “public benefits charge” that will appear on your electricity bills as of July 1. The public benefits charge pays for the costs of state-required energy programs and policies. In other words, the rate increase helps to keep the lights on and to follow CT energy laws. Assuming 700 kilowatt-hours (kWh) of energy used per month, this charge will see rates rise by about $1.55 for UI customers and about $8 for Eversource customers.

Public Benefit Charges And Grid Reliability

Some may argue that the rate hikes are completely fair since these charges also reflect costs for investing in grid reliability. As a result, most customers experience fewer outages now than they did in previous years.

For instance, ten years ago, most customers saw outages once every ten months. But grid investments by Eversource has reduced outages to only once every 20 months. Of course, these averages do not include weather related events. This is because climate change and severe storms and hurricanes can disrupt services despite the best efforts from UI or Eversource.

How CT Customers Can Save

Obviously, even if it can be considered fair, rate hikes are never good news. These can be especially harmful to lower income families. However, keep in mind that supply rates from third party suppliers are still low right now. And that means you should start shopping for the best energy plans in town.

For example, the Constellation 24 Month Home Power Plan charges a supply charge of 8.79 cents per kWh or about 2.2% less compared to Eversource. And rates may drop even further during the brief fall shoulder month pricing starting this September. Keep in mind that CT lawmakers banned early termination fees in 2021. So smart, active shoppers can save big by switching for better deals as they come.

Public Benefits And Standard Offer Savings

For many CT electric customers, the higher July 1 standard offer rate hike is bad news. That’s because it means bills will rise despite the drop in energy supply costs. However, if you shop smart and often, you can find great deals that will offset these price increases.

You can always count on https://www.ctenergyratings.com as your first stop to shop for the best energy rates in town. We’re also a great first step to keep up with the news affecting your bills.