Utilities Back Off Plans to Charge Interest on Deferred Payments
BOSTON — Major utilities have agreed to waive interest charges on Gov. Maura Healey's call for a reduction of gas and electric bills.
Healey plans to use $180 million to cut electricity bills by 25 percent and gas bills by 10 percent for residential customers in February and March. The governor pledged the reduction in her State of the Commonwealth speech last month as a way to provide relief to consumers during this frigid winter.
The funds will cover only 15 percent of the electricity bills, with utilities voluntarily deferring another 10 percent, which they can recover starting in April. But then they planned to charge customers interest on the deferred payments of up to 6.75 percent.
This move to dun customers with interest and carrying charges apparently came as a surprise to the governor, who demanded they remove the costs.
National Grid, Eversource, Berkshire Gas and Unitil have all agreed to waive all interest charges, the governor said Wednesday.
Liberty Gas will not defer any costs.
"Bills are too high and customers can't wait for relief. That's why I acted to get $180 million off winter electric bills and called on the utilities to help provide immediate relief — including waiving interest charges," said Healey in a statement.
"After seeing what they proposed, I again called on the utilities today to waive interest charges and they have agreed. Customers need relief and we're going to continue to push for it. That includes our energy affordability legislation, which creates more accountability for utilities, gets charges off bills, and drives down costs."
Customers will get an automatic bill reduction with no way to opt out, which would have meant being charged more than the reduction.
Tags: electricity, natural gas,
