Politics & Government

Danvers Residents To See 'Consumer Charge' In Utility Bill

The town said the charge is needed because service costs were not covering operational costs for Danvers Electric.

DANVERS, MA — Customers of Danvers Electric will soon start seeing a $7.50 "consumer charge" on their bill after the Danvers Municipal Light Board voted to implement the charge for 2021.

A cost-of-service study showed that the current electric rates were not covering the operational costs of Danvers Electric. The board said a corresponding expected drop in projected fuel charges should make the changes "cost neutral" for residential customers who use an average of 1,200 kilowatts per month or more.

The study can be found here.

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"We have many more very low users of electricity due to the addition of solar panels or customers being away for portions of the year," the board said. "The standard practice in the industry is to have a base monthly customer charge to cover costs, especially in the case where a customer uses very little or no billable electricity."

The board said the $7.50 charge is roughly 33 percent of the study's recommendation.

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"The MLB and Danvers Electric are always concerned about the impact rate increases will have on our customers and continue to keep the rates in Danvers well below that of the private utility companies and most other municipal electric departments in the area," the board said. "It continues to be our priority to provide excellent electrical service and dependability to all our customers."

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(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. Twitter: @Scott_Souza.)

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