5 reasons why your electric bill will continue to rise
TOP 5 REASONS
WHY YOUR ELECTRIC BILL
WILL CONTINUE TO INCREASE
#1) INFLATION. The rise in the general level of prices of goods and services in the country over a period of time. This is inevitable and happens in any industry.
#2) SOLAR. Someone is switching to solar every five minutes in the United States. With this mass exodus from traditional electricity, the utility companies have to find ways to stop the bleeding. The fastest way to do this is by:
#3) RATE INCREASES. The average homeowner will spend well over $60,000 in a 25-year period on their electricity bill. As Solar becomes more popular and mainstream, it will force the Utility companies to recoup these massive losses. The best way to recover those losses is to raise the rates (slowly and over time) of those who have not gone solar yet.
#4) SNEAKY DEMAND CHARGES. Electricity bills are made up of various charges. ‘Energy charges’ are based on the total amount of energy consumed each month, while ‘demand charges,’ the lesser-known part of the bill, are based on the maximum power required by the facility at a single point in time each billing cycle.
Demand charges often make up more than 50 percent of a home's electricity costs, and these rates continue to rise. Demand rates have increased by an average of more than 75 percent over the last decade.
Due to factors such as inexpensive natural gas and widespread adoption of renewables, the cost of producing energy has actually declined or stayed flat in recent years. As a result, energy charges have largely trended down, while the cost to deliver that energy has stayed the same or even increased, due to aging infrastructure and capacity constraints. This means that energy providers must increase demand rates to make up for lost revenue and cover fixed costs.