National Grid Rate Hike: What the August 1st Electricity Increase Means for Your Wallet

If you open your National Grid bill this August, you might notice some serious sticker shock. Starting August 1, National Grid is increasing its basic service electricity rates by 11.8%. The rate is jumping from 15.37¢ per kWh to 17.19¢ per kWh.

With the heat of late summer pushing air conditioners to their limits, this timing is tough for many Massachusetts households. Let’s break down exactly what this means for your monthly budget, why the utility is raising prices, and how you can protect yourself from the surge.

The Math: How Will This Impact Your Bill?

To understand how this affects your actual costs, let’s look at a typical household that uses 1,000 kWh of electricity in a month.

Before August 1, that 1,000 kWh of supply would cost you $153.72. Under the new rate, the exact same amount of electricity will cost $171.85.

• The Difference: An extra $18.13 per month, applied solely to the supply portion of your bill.
• The Caveat: Keep in mind that this increase applies only to the supply rate (the cost of the electricity you actually consume). Your total electricity bill will still include delivery charges, customer fees, and state taxes, meaning your overall monthly increase could feel slightly higher depending on overall grid adjustments.

Why Is National Grid Enacting This Rate Increase?

Utilities typically adjust their standard “Price to Compare” basic service rates every six months (on February 1 and August 1) to reflect the shifting economics of regional power markets. National Grid points to a few major drivers behind the 2026 climb:

• Grid Modernization and Climate Resilience: Severe weather and increased peak demand require massive capital investments. National Grid is spending heavily to update aging infrastructure, strengthen the physical grid against storms, and enhance digital cybersecurity defenses.
• Capacity and Wholesale Costs: The New England independent regional system operator (ISO-NE) manages the wholesale markets. Recent regional capacity auctions cleared at higher prices due to the retirement of older power plants and strict new grid reliability requirements, raising the baseline cost of buying electricity.
• Clean Energy Transition Costs: Moving toward state-mandated emissions reductions means paying to integrate massive new offshore wind and battery storage projects into the traditional grid infrastructure.

How to Find Utility Bill Assistance

If this increase threatens your household budget, you don’t have to carry the burden alone. There are several federal, state, and utility-specific assistance programs available to help eligible Massachusetts residents:

• LIHEAP (Low Income Home Energy Assistance Program): This federal initiative provides financial assistance directly to your utility vendor to help pay heating and electricity bills. Eligibility is based on household size and gross income.
• National Grid’s Discount Rate: Low-income households may qualify for National Grid’s R-2 rate class, which offers a substantial discount (often around 25-32%) on both the delivery and supply portions of the electric bill.
• Arrearage Management Program (AMP): For customers who have fallen behind on past bills, National Grid offers a structured forgiveness program. If you make your current regular monthly payments on time, a portion of your past-due balance is forgiven each month until it’s wiped clear.

Lowering Your Usage: What is Mass Save?

The absolute best way to combat rising rates is to use fewer kilowatt-hours. In Massachusetts, you have access to Mass Save, a unique collaborative initiative between the state’s natural gas and electric utilities.

Mass Save is designed to help residents, businesses, and communities make energy-efficient upgrades at little to no cost. Here is how it can help you soften the blow of the rate hike:

• No-Cost Home Energy Assessments: A certified energy specialist will analyze your home’s energy use, pinpoint where you are losing energy, and provide free energy-saving items such as advanced power strips and low-flow showerheads.
• Insulation and Air Sealing: Mass Save frequently covers 75% to 100% of the cost of adding insulation and sealing air gaps around your home, which dramatically reduces the energy required to heat or cool your living space.
• Massive Rebates: If you are upgrading old, inefficient appliances or switching to modern electric heat pumps, Mass Save provides thousands of dollars in direct rebates to significantly lower your out-of-pocket setup costs.

Shopping Around: How to Use Energy Choice

Massachusetts is an Energy Choice state. This means that while National Grid will always deliver your electricity and fix the wires when the power goes out, you do not have to buy your actual power supply from them. You have the right to shop around for a retail electricity supplier.

National Grid’s new rate of 17.19¢ per kWh is your baseline “Price to Compare”. If you can find a competitive retail supplier offering a lower rate, you can switch and save money on the supply side of your bill.

How to Shop Safely:

1. Find an Electricity Marketplace: The state-run website, Energy Switch Massachusetts, is the shopping portal where all providers will be listed. However, not all electricity providers are created equal. Our online marketplace vets providers for the best rates, reputation, and customer satisfaction so you only see competitive prices from the best electricity providers in Massachusetts.
2. Compare Rates: Look for suppliers offering rates below 17.19¢ per kWh. Some suppliers might offer fixed rates for 6, 12, or 24 months, shielding you from future utility rate spikes.
3. Read the Fine Print: Avoid plans with hidden enrollment fees, monthly base charges, or steep early-termination penalties. Look for a fixed-rate plan, so your price doesn’t suddenly explode after a one-month promotional window ends.
4. Consider Municipal Aggregation: Many Massachusetts towns buy electricity in bulk for their residents through local green municipal aggregation programs. Check your city or town website to see if they offer a stable community choice rate that undercuts National Grid’s basic service price.

The Bottom Line

The upcoming August 1st rate increase will squeeze household budgets, but between Mass Save’s energy audits and Energy Choice alternative suppliers, Massachusetts residents have real tools to push back. Take an hour this week to review your bill, see which municipal options or retail plans are available in your ZIP Code, and set your home up for a lower-cost season.