The trend of price gauging on utility prices has lasted for nearly two decades in Massachusetts. It has created major hardships for working-class communities of color, who have been disproportionately impacted by environmental hazards caused by gas infrastructure. Those who have been affected by price gouging should seek help from the Office of Attorney General Maura Healey. She is launching a campaign that offers tips on energy management and resources for struggling billers.
In addition to the recent natural gas rate hike, electricity rates are also expected to increase dramatically. Typical residential customers using 600 kWh of electricity will pay $293 for the winter of 2022-2023. This is a 22 percent increase from the average electricity bill in 2016. Meanwhile, the cost of natural gas is expected to jump by almost a third.
The state’s largest utility companies, Eversource and National Grid, have announced significant price increases. Last summer, Eversource said it would raise electric rates by between 19 and 30 percent. According to the company, the increases will last from January through June. They expect to file a proposal with the Department of Public Utilities by mid-November.
Earlier this year, the US Department of Health and Human Services announced $4.5 billion in financial assistance programs to cover energy costs in the coming winter. This is in addition to the federal government covering unpaid bills.
During the downturn, many oil companies went bankrupt. As a result, the prices for heating oil and gasoline are now at record levels. While the rise in prices has been attributed to the war in Ukraine, inflation has also contributed.
While most states have deregulated their utility companies, Massachusetts is one of seven states that has not. This means that utilities must meet state requirements to operate. For example, they must pay for transmission costs. During an emergency, businesses may hike the price of critical supplies. Usually, the price is not increased excessively.
Although the Department of Public Utilities has approved the review of rates, legislators have been urging the agency to reverse the price increases. In addition, the Office of Attorney General is expected to file suit against those who are responsible for price gouging.
In the meantime, Eversource and National Grid are offering financial assistance programs. They claim these hikes are necessary to provide better infrastructure and repair services. However, residents believe that utilities should not be allowed to make substantial price changes. Several customers have already filed a complaint with the PURA.
Other states are calling for investigations into possible price gouging. The Office of Attorney General Maura Healey plans to work with municipalities and service organizations to raise awareness about the price increases. Also, she has urged people to participate in an energy efficiency audit. A home-battery capacity could lower the amount of money that customers spend on their monthly bills.
The Office of Attorney General Maura Healey is planning a campaign to help working class families cope with rising utility prices. She will promote energy efficiency measures and encourage residents to find affordable housing.
