BGE has announced significant electricity price increases for their residential and commercial customers on their default supply service rate structure. The rate increase for both households and businesses will go into effect on October 1, 2023 and will remain through the end of of May 2024.
Residential customers will see the supply portion of their BGE electric bill increase by 17.8% as they will witness their rate go from 9.9983¢ to 11.761¢ per kWh. Meanwhile, the majority of small business customers will experience a rate increase from 9.618¢ or 9.687¢ – depending on the exact rate classification – to the new October 2023 rates of 10.817¢ or 10.859¢, representing a 12.1% rate increase.
These rate increases are only for those customers on the BGE default standard offer service rate and thus will have no effect on customers who are currently purchasing their power supply from competitive Maryland electricity suppliers. Due to Maryland’s status as an electricity choice state, all customers have the ability to get off of their utility default rate and onto a competitive low electricity rate plan.
In order to Avoid the BGE electric price increase customers just have to select a competitive plan that is lower than the new default rates. Current competitive rates are closer to what the default rate has been in the first half of 2023 and in some cases even lower. Competitive residential BGE rates are posted below and updated in real time:
Unfortunately, the majority of BGE customers are still on the default rate and subject to the rate increase. Many of these customers are simply not aware of the existence of Maryland electricity choice, or the benefits of the program. The October 2023 rate increase might help bring awareness to lower electricity rate options throughout the state, but the sooner these customers lock in a low rate the better it will be for their budget.
|*data provided by Maryland Public Service Commission
|BGE customers on a competitive plan (as of July 2023)
BGE customers looking to avoid the rate increase and even lower their existing electric bill should start shopping for competitive rate plans immediately.