Rhode Island Electricity Rates
Rhode Island residents are serviced by the utility National Grid for their electricity. However, as a Rhode Island resident or business owner, you have the ability to shop electricity rates from other providers. You may have noticed your electricity bill is separated into supply rate and distribution rate. The distribution rate is charged by your utility and cannot be changed. However, the supply rate can be shopped around for Rhode Island residents thanks to energy deregulation.
While Rhode Islanders pay about the national average for natural gas, residential electricity rates are about 25% higher on average. Rhode Island commercial and industrial sectors pay even high rates than residential. Rhode Island businesses pay 30% higher electricity rates and industrial pays over 90% higher electricity rates on average.
Energy Deregulation History in RI
Rhode Island began the process of restructuring and deregulating their energy market in January of 1998. 25 independent energy providers were allowed to service the state initially. However, the utilities could offer an interim rate of 3.2 cents/kWh which was much lower than any rates the independent energy retailers were able to offer.
After a year and a half of energy deregulation, only 2,000 of the Rhode Island’s nearly half million residents had switched to an independent retail provider. Because so few were switching electricity rates, the Rhode Island House of Representatives passed a bill in 2002 to help establish a competitive market. The bill allowed Rhode Island municipalities to set up aggregations to help customers benefit from a large economy of scale.
Rhode Island Utilities
Rhode Island’s energy utility is National Grid. On October 1st, 2017, National Grid announced they would be raising their rates in Rhode Island from 6.3 cents/kWh to 9.5 cents/kWh through March of 2018. You can find out more about National Grid below.
- National Grid
Ready to Start Comparing Electricity Rates?
Rhode Island residents wanting to take advantage of their choice to shop and switch electricity rates can do it easily on our website. Simply type in your zip code into our compare and switch tool below and be instantly taken to our marketplace with all the electricity supply rates available. Switching electricity rates can be done in as little as 5 minutes and is 100% free to shop! Your information is secure and won’t be shared with any 3rd parties. So, what are you waiting for?
Compare electricity rates in under a minute.
How to Compare Electricity Rates
For many Rhode Island residents and businesses, comparing their current supply rate with others available may be most important. However, it’s important to know that there are other factors that should be considered when switching electricity rates.
Type of Rates – There are many types of rates out there including fixed, variable and month to month rates. It’s important to know which type of rate you are signing up for as it may be subject to change. Click here for more information on rate types
Contract Length – Some contracts are month to month and some can be as long as 3 years. Make sure you are aware of the term length before you sign up.
Incentives –Some providers offer sign-up bonuses, rewards programs and point earning systems, guaranteed savings, and more.
Renewable Electricity Offerings – Looking to be more environmentally conscious? Many providers offer partial or 100% renewable electricity options as well as Renewable Energy Certificates (RECs) to residents and small businesses. While the rates are higher than traditional electric sources, the availability of renewable electricity has driven costs down and can often be found for less than the utility’s Price-to-Compare for traditional electricity.