If approved, the new rates would go into effect on Oct. While the change wouldn't technically cap a household's energy bills at 6% of its income, the company predicts that will be the net effect for most low-income customers. Barde said that even with the existing discount rate, some National Grid customers spend about 20% of their income on energy. And it he said it should go a long way to reducing the "energy burden" many in the state currently face.Ī household is considered " energy burdened" if it spends more than 6% of its monthly income on utility bills. Instead of offering a flat 32% discount to qualifying customers, the company wants to implement a tiered structure that would offer up to a 55% discount on bills each month.īarde called the proposal “more equitable” and “more responsive” to what customers actually need. This week, National Grid proposed a substantial overhaul of its discount rate structure. “You still see large numbers of customers at the lower end of the income distribution for whom that level of assistance isn’t adequate to keep their energy burden to a manageable level,” he said. It’s a generous discount by national standards, but it’s often not enough, said Karsten Barde, director of policy and strategy for National Grid. To help to make energy more affordable, utilities offer “discounted rates” for low-income residents, which cover roughly a third of a customer's total electric bill. Massachusetts has some of the highest electric rates in the country, and every year, many residents struggle to pay their utility bills. They can voluntarily join the program, but they may be subject to penalties or early termination fees from the third-party supplier if they switch to the electricity program during the term of their contract with their chosen supplier.Facebook Email A thermostat in a home. Newly eligible customers will receive a Customer Notification Letter detailing the program and ways to leave the program (opt out) those who choose not to opt out will be automatically enrolled.Ĭustomers who have chosen a third-party supplier will not receive a Customer Notification Letter and will not be automatically enrolled. Please keep in mind that future savings cannot be guaranteed because National Grid Basic Service rates change every six months for residential and commercial customers and every three months for industrial customers.
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