(WWLP) – Electric rates are set to be reduced for National Grid customers in Massachusetts at the beginning of May.
Proposed energy rate changes are ultimately approved or rejected by the Department of Public Utilities and costs depend on the power market.
In Massachusetts, National Grid switches every six months from winter to summer rates whether it’s an increase or decrease depends on costs in the open market, according to a National Grid spokesperson Bob Kievra, “that’s strictly a passed-through amount that’s what we pay for electricity out on the open market.”
Bob Kievra of National Grid explained that several factors have contributed to recent higher costs prices, “rates rose significantly due to inflation, efforts in Ukraine, and supply chain issues and we’re pleased that six months later, we’ll be able to provide some relief for customers.”
With this reduction, customers can expect to save around 39 percent on their monthly bills.
For an average customer, that means a $297 a month bill will drop to about $181 a month.
22News also contacted Eversource to ask about when supply rate prices may drop for its customers. According to Eversource spokesperson William Hinkle, it’s similar to how rates are determined at National Grid.
Hinkle said, “the energy supply price changes twice a year from January 1 and July, representing the cost that Eversource pays generators for the power that customers use.”
Typically, summer electrical rates are lower than winter rates because the usage of natural gas drops.
Both Eversource and National Grid encourage customers who may be struggling with energy payments to look into the assistance resources they offer.