Is Your Electricity Bill Higher? Here’s Why

by CrownHeights.info

Across the state, New Yorkers are opening up their electricity bills in dismay. Prices are just getting higher, even without additional usage.

The reason for the higher charges can be found on the breakdown of each individual electricity bill, and it’s the “supply charge”.

According to a report by the Bklyner, New York’s Con Edison customers have seen an over 50% jump in the “supply charge” on their monthly bill, adding to an already established 13.5% rise in Con Ed rates that are being implemented over the next two years.

So what is the “supply charge”, and why is it getting higher?

The “supply charge” is simply the basic cost of providing the electricity as a commodity, meaning the cost of the electricity itself. Costs associated with the production of the electricity, such as the natural gas, facilities, and 3rd party contracts are all factored into this charge. As the cost to produce or buy the electricity rises, so does your “supply charge”.

In this case, the cost to produce the electricity has risen sharply, trickling the cost down through Con Ed to the consumer, which is you.

The “supply charge” should not be confused with the “delivery charge”, which can also be found on your electricity bill, and is the cost of maintaining the electrical grid. this charge is what received a 13.5% increase which will be seen gradually over the next two years.

So how can you keep your electricity bill down? At present, the best way is to use less electricity, either by scaling back your use, or by upgrading to more efficient appliances.

Another gradually more lucrative option is solar panels, which are growing in popularity but are still too expensive to provide quick savings. As the price of electricity continues to rise though, the gap to jump to solar panels narrows considerably.

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