National Grid announced earlier this year that it was implementing a rate plan which would gradually increase electricity and gas rates by $16. The new rates will go into effect on April 1. The company provides a variety of options for its customers, including Standard Service and Natural Gas Pricing.
These rates are determined by the current market. In the past year, prices for energy have increased by 30 percent, and inflation has had the biggest impact. According to PSC staff the cost of shared services has gone up above inflation. The plan approved calls for enhance low-income support programs and to invest in the company’s network. It also includes a $50 million modification to assist families with heating oil costs.
The rate plan was approved by the Senate and will cut the effect on the customers’ bills by half in the first year. In the second year, the increase will add an additional $6 to the average bill. This is in addition to the $16 increase for electric and gas customers. Each bill will be an extra $30. The increase will be spread over three years, which will reduce the impact of the first year by approximately half.
National Grid’s electric rates were always among the highest prices of major utilities. The residential rates of National Grid were 37% more than the average national rate in 2008, while its commercial rates were 60% more. The company claimed it was purchasing other utilities to save money through consolidation. However, the company has been accused of a rate hike that are intended to benefit customers. The Public Utility Law Project argues that many consumers are struggling to pay the high rate and argue that rates should have been lowered more.
The new rates will impact more than 3,000,000 customers in the United States. National Grid’s electricity business service covers 450 cities and its gas distribution network 600,000. It is a global corporation located in the UK. It is a leader in the electricity and gas industries.
The rates of the company must be in line with the laws. National Grid has strict policies to ensure that its rates remain competitive. Additionally, the company has a web portal that offers information on its suppliers, and provides links to help customers understand their bills. The company also provides information on recent energy frauds. It offers free energy efficiency improvements for homes, and provides income-eligible heating assistance to low-income consumers.
The company also encourages economic growth in the Northeastern United States. The National Grid Foundation grants grants to non-profit groups and offers various community-based programs. The Good Neighbor Energy Fund, which can provide grants up to $300 for families with low incomes, is offered through the organization. A calculator is available on the website that will aid consumers in calculating the typical delivery cost of their power and gas. There are a variety of residential pricing options that include Natural Gas Pricing, Distributed Generation Service and the Residential Option.