Making Sense of the Cents/kWh - Or, Why I Switched my Energy Supplier
For the first time ever, I have chosen to purchase my electric “energy” from an independent supplier, instead of relying on my electric utility, Unitil. The reason: The price of natural gas determines the cost of energy in our region, and it is going up significantly. In December, Unitil’s price for the energy portion of its Residential electric bills in New Hampshire will increase more than 140 percent (!) from about 7 cents per kilowatt hour (kWh) to about 17.5 cents/kWh. I have switched to a plan that will cost about 9.6 cents/kWh that will begin the next time my meter is read.
The amount of energy I use varies from month to month. (I use the most electricity in the summer months when I fire up a couple of window air conditioning units.) But, if I calculate an average demand of 600 kWh/month for six months, I will save more than $285.00 compared to what I would pay if I had not switched to an independent supplier.
To be clear, “energy” is just one portion of my total electric bill. It covers about one-half of the total monthly bill, with the various costs associated with “delivery” of that energy covering the rest.
Is there a risk in switching? Yes, some. I have chosen the option of a “fixed” rate that will not change, but I am locked in for 14 months. (I can pay a $50 cancellation fee to quit the supplier, if I wish.) Unitil’s energy rate changes every six months. The new Unitil energy rate next summer might be less than the 9.6 cents/kWh I’ll still be paying my independent supplier, but, overall, I expect I will have net savings over the 14 month period.
Another risk comes if one chooses a plan with a “variable” rate. That rate may initially be cheaper than the fixed 9.6 cents I am paying, but it comes with the risk of an increase with little notice due to market conditions. (Pro Tip: always read your monthly bill!)
New Hampshire’s residential electric customers for years have had the right to switch from the default energy rate offered by their electric delivery company, but until now I didn’t believe it was worth the hassle. The upcoming Unitil increase has changed my mind.
I have included several links, below, that may be helpful to better understand the issue and how to move forward if considering a switch.
The NH Office of Consumer Advocate has written several columns about the upcoming energy rate increases. I found this one especially helpful:
http://indepthnh.org/2021/10/03/coming-soon-drastic-rate-increases-for-electricity-and-natural-gas/
The NH Public Utilities Commission has plenty of official language on choosing an energy supplier. You’ll find background on the issue, and a link to a listing of suppliers, at the link below.
https://www.puc.nh.gov/consumer/Choosing%20an%20Energy%20Supplier.html
The NHPUC also has a page comparing some of the various plans offered to Residential customers of Unitil. I’m not certain it lists every supplier currently registered to sell energy, and their plans, but it’s a good starting point. You’ll want to then visit the actual website of one of the suppliers to understand what is being offered; the terms and conditions.
https://www.puc.nh.gov/ceps/ResidentialCompare.aspx?choice=Unitil
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