Connecticut residents living in the Eversource (CLP) service area can expect the basic generation service (BGS) charge for residential rates to increase 14% starting January 1, 2021. If you haven’t already shopped around for a competitive electric supplier, then now is a good time! The current rate for residential rate class Rate 1 is 7.375 cents per kWh. The 14% increase will push the rate up to 8.391 cents.
The basic generation service (BGS) is the default rate Eversource is required to charge customers for generation services. The BGS changes twice a year – once in January and July. The BGS is not considered competitive as Eversource profit margins are mandated by the Public Utilities Regulatory Authority (PURA). Customers switching over to a competitive electric supplier will not financially hurt Eversource. The main responsibility of Connecticut utility companies is to maintain the power lines to safely deliver the electricity to its customers.
Business Rates to Increase 10%
The Eversource BGS charge will also increase for small and large businesses from 7.421 cents per kWh to 8.192 cents. A business can expect the 10% increase to be reflected once they receive the electric bill in February. Just like residential rates, the commercial BGS charge changes twice a year. Large users can lock in a long-term rate plan with an alternate electric supplier and be protected against any increases in the market. Fixed-rates will put a ceiling on the price during a rising market.
Eversource Electricity Supply Rates
| Rate Class | Jul. - Dec. 2020 | Jan. - Jun. 2021 | Change |
|---|---|---|---|
Rate 1 | 7.375 | 8.391 | 14% |
Rate 30 | 7.421 | 8.192 | 10% |
Rate 35 | 7.421 | 8.192 | 10% |