Worcester Electric Rates Rising, But Still Cheaper Than National Grid

WORCESTER, MA — Worcester residents who participate in the city's municipal aggregation electricity program will see their rates rise in December — but not by as much utility giant National Grid is proposing.

Worcester recently renegotiated its contract with electricity broker Direct Energy. The new contract will go into effect Dec. 1 with a electricity supply rate of 25.63 cents per kilowatt-hour —a 124 percent increase over the current supply rate of about 11.44 cents per kilowatt-hour. The new rates will be reflected on January bills.

But the municipal aggregation program will still be much cheaper than National Grid. The UK-based utility company has asked state officials to allow it to increase utility rates to almost 34 cents per kilowatt-hour, the largest increase ever. Worcester has estimated the average electric user will save about $42.50 per-month using the aggregation program.

National Grid has said the rate it's increasing rates so much due to natural gas supply shortages. That fossil fuel powers many electricity plants that supply power to New England.

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Worcester's municipal aggregation program will also change rates based on the season. The 25.63 cents per kilowatt-hour rate will be in effect until July, but will drop to 16.91 cents per kilowatt-hour from July to December 2023.

Worcester residents can also sign up for a slightly more expensive aggregation plan that provides 100 percent of electricity from renewable sources like wind and solar. That program will cost 27.49 cents per kilowatt-hour this winter.

Municipal aggregation programs only affect the supply side of your electric bill. The delivery portion of the bill is what National Grid charges to send electricity over the grid from the plant to your house.

If you want to learn how to get Worcester's cheaper electric rate (it's free to sign up), visit the Green Worcester ElectriCITY website.