Hike rates

PPL plans to raise rates again; here’s how much more you could pay each month – The Morning Call

Some PPL Electric Utilities customers will pay hundreds of dollars more for service this year.

After an increase of nearly 26% in the residential price to be compared in December, there will be an increase of 38% as of June 1.

The average residential PPL customer will see their monthly bill increase by about $34, the company said.

“In current dollars (not adjusted for inflation), this is the highest residential price to compare since the default rate began being offered in 2006,” said PPL spokeswoman Alana Roberts. . “The increase is due to several ongoing market conditions that are impacting most sectors of the economy, including the rising cost of energy supply sources as well as headline inflation and other events. global economies.”

The last double-digit increase was a 14% jump in June 2017. However, this was followed by a 12% drop in December 2017.

The price to be compared is the wholesale price that PPL passes on to customers who rely on the utility to purchase electricity.

“If customers do not choose a supplier, they will receive default supply through PPL Electric in accordance with state law,” Roberts said. “It is updated twice a year by PPL based on competitive energy auctions, designed to secure the lowest tariff offered, which PPL then passes on to customers based on their electricity consumption, without profit. for the company.”

In PPL territory, which includes the Lehigh Valley, about one-third of residential customers buy from competitive providers, said Nils Hagen-Frederiksen, spokesman for the Pennsylvania Public Utility Commission.

“For them there is no change until their contract expires,” he said.

Hagen-Frederiksen said the commission operates a neutral and independent shopping comparison website – papowerswitch.com — where customers can compare electricity suppliers in the region.

“Lower prices tend to come with shorter-term contracts, especially at this time when we are witnessing a very volatile global energy market,” he said. “Prices are swinging quite dramatically.”

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The sharp increase in energy costs also comes at a time when temperatures generally start to rise.

“Summer is typically the highest electricity consumption season of the year due to air conditioning demand,” Hagen-Frederiksen said.

He pointed out that energy prices tend to fluctuate, but recent conditions have led to high prices.

“They go up…they go down,” he said. “These are some of the most substantial increases we have seen in years, but we are in an unusual set of circumstances in that there is dramatic upward pressure on energy prices in the whole world.”

Gary Drapek, president and CEO of the United Way of Lackawanna and Wayne Counties, noted that the significant price increase could force vulnerable citizens to make tough decisions.

“A large part of our population is still trying to get out of the pandemic,” he said. “A 38% increase in their utility bill is going to be devastating. What usually happens, especially when it comes to seniors, is that they give up something else to pay their utility bills, usually medication. People are going to have to make major sacrifices.

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