In a press statement, the energy distribution company said it received the green light to increase the costs of energy for its customers registered with the company’s Standard Service Generation energy tariff model.
Under the Standard Service Generation energy tariff model, Eversource Energy purchases electricity directly from the wholesale market and supplies it to its customers, with no profit.
By law, utilities are allowed to increase energy tariffs for customers buying electricity through the Standard Service Generation energy tariff model, twice a year, on January 1st and July 1st.
Following the approval, the energy provider will charge its customers 8.01 cents per kilowatt-hour up from 7.87 cents per kilowatt-hour as from July 1 through to December 31.
Commenting on the development, Penni Conner, chief customer officer at Eversource, said: “This slight increase is a direct reflection of the energy price volatility we’re seeing in New England and more proof of the need for new energy infrastructure in the region.”
Eversource Energy provides electricity to some 1.2 million customers in 149 cities and towns in Connecticut state.
Impact of energy efficiency on energy tariff
Despite the increase in energy tariff, Conner urged consumers to sign up for the company’s energy efficiency programmes to keep their energy bills low.
The news follows a decrease in electricity consumption by the 3.7 million customers of Eversource Energy in Connecticut, Massachusetts and New Hampshire during the first three months of 2017 compared to 2016.
According to Connecticut new source, The Hour, the utility’s customers recorded a decrease in energy consumption by 0.4%. In addition, Eversource Energy recorded an increase in sales of natural gas sales by 4.6% whilst overall net profit in the first quarter of 2017 rose by 4.6% compared to 2016.
In late January, Eversource Energy also filed a proposal with the Massachusetts Department of Public Utilities to increase its electricity rates for customers in western and eastern Massachusetts to raise capital for funding its smart grid projects.
The filed proposal includes an increase an 10% in monthly electricity rates for consumers using 550KW/h in western Massachusetts as from January 2018. According to its forecasts, Eversource could raise up to $35 million needed to improve the company’s grid infrastructure in western Massachusetts. Read more…
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