PPL plans to raise interest rates again;  Here's How Much You Could Pay Each Month - The Morning Call

PPL plans to raise interest rates again; Here’s How Much You Could Pay Each Month – The Morning Call

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

After a roughly 26% increase in the comparable housing price in December, there will be a 38% increase as of June 1.

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

“In current (non-inflation-adjusted) dollars, this is the highest comparable housing price since it began showing the default rate in 2006,” said Alana Roberts, a spokesperson for PPL. “The increase is due to several persistent market conditions affecting most sectors of the economy, including rising costs of energy supply sources as well as general inflation and other global economic events.”

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

The price to be compared is the wholesale price transmitted by the PPL to the customers who depend on the utilities for the purchase of their electricity supply.

“If customers do not choose a supplier, they receive the default supply through PPL Electric in accordance with state law,” Roberts said. “It is updated twice annually by PPL based on competitive power auctions, which are designed to secure the lowest bid price, which PPL then passes on to customers based on their electricity use at no profit to the company.”

In the PPL territory, which includes the Lehigh Valley, about a third of residential customers shop for competing suppliers, said Nils Hagen Frederiksen, a spokesman for the Pennsylvania Public Utilities Commission.

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

Hagen-Frederiksen said the committee operates a neutral and independent comparison shopping site – papowerswitch.com – Where customers can compare electricity providers in the region.

“Lower prices tend to come in short-term contracts, especially now when we’re seeing a highly volatile global energy market,” he said. “The prices fluctuate significantly.”

commercial buzz

commercial buzz

daily

Daily update for the Lehigh Valley Entrepreneur.

The surge in energy costs also comes at a time when temperatures usually begin to rise.

“Summer is generally considered to be the highest electricity use season of the year due to the demand for air conditioning,” said Hagen Frederiksen.

He stressed that energy prices tend to fluctuate, but recent conditions have led to higher prices.

He said, “They go up … they go down.” “These are some of the biggest increases we’ve seen in years, but we are facing a set of unusual circumstances where there is significant upward pressure on energy prices around the world.”

Gary Drebke, president and chief executive officer of the United Way of Lackawanna and Wayne County, noted that a significant increase in prices could force vulnerable citizens to make difficult decisions.

“A large portion of our population is still trying to get out of the epidemic,” he said. “A 38% increase in their utility bill would be devastating. What usually happens – especially when you are dealing with elderly people – is that they give up something else to pay their utility bills, usually medications. People are going to have to make big sacrifices.”

Contact the author: rtomkavage@timesshamrock.com; 570-348-9131; rtomkavage on Twitter.

#PPL #plans #raise #interest #rates #Heres #Pay #Month #Morning #Call

Leave a Comment

Your email address will not be published.