Tewksbury Utility Rate Hikes On The Way: How You Can Lower Your Bills

TEWKSBURY, MA — National Grid, the utility that supplies electricity and natural gas to Tewksbury, released a statement on Wednesday warning of impending rate hikes and offering customers solutions to lower their bills this winter.

Nationwide rate hikes are being driven by the surge in the price of natural gas, which drives electricity costs.

Russia's invasion of Ukraine has been a major factor as sanctions imposed on Russia have reduced the global supply of natural gas, while global demand has remained high.

The war has only compounded a longstanding natural gas problem in New England: the region doesn't have enough gas pipelines to keep up with demand, according to the energy regulator ISO New England.

National Grid normally switches from summer rates to the traditionally higher winter rates on Nov. 1. But this year's winter rates will be significantly higher than winter rates of the past, the company said.

"In total, the monthly bill of a typical residential electric customer using 600 kWh will increase from $179 in the winter 2021-2022 season, to approximately $293 for the winter 2022-2023 season, or a 64-percent increase," National Grid said in a statement.

National Grid said it has worked to keep the delivery portion of the bill "essentially flat." That portion of the bill is what pays for infrastructure to deliver electricity to customers.

As for natural gas rates, National Grid said it has a pending proposal with the Department of Public Utilities that would result in a monthly bill of $278 for an average Boston Gas residential heating customer using 115 therms per month. That is an increase of $50, or 22 percent, compared to rates last winter, according to the company.

National Grid has made it clear that its rates are based on what the company pays for energy and gas on the wholesale market, and that it does not mark up prices in order to profit.

As a result of the rate increases, National Grid has launched the Winter Customer Savings Initiative to help customers reduce their energy and save money, better manage their bills and secure available energy assistance.

"We want to do everything we can to help our customers manage through the months ahead through our Winter Customer Savings Initiative, while maintaining high levels of service to meet their energy needs this winter season," said Helen Burt, National Grid's chief customer officer.

Burt continued: "This includes informing customers that they can 'shop' or choose from different energy suppliers, in addition to taking advantage of energy saving programs, including those supported by Mass Save. We believe helping customers take more control over how and what energy they use creates a more equitable and affordable energy future."