Many consumers in Ohio are experiencing sticker shock when they open their energy bills this month. Rising energy prices are causing bills to skyrocket, leaving customers wondering why they are paying so much.
The main reason for the increase in energy bills is the rising cost of electricity. Utility companies in Ohio do not generate their own electricity, so they must purchase it at an auction. Factors such as inflation and global events, like the war in Ukraine, have impacted these auctions and caused electricity prices to rise.
Jim Mathers, president of Energy Professionals, an energy consulting firm, explains that the cost of generation is increasing, especially with the reliance on an older grid. In addition, increasing demand for electricity puts a strain on the system, leading to higher prices.
For Duke Energy Ohio customers, the company states that a September bill for a typical customer using 1,000 kilowatt-hours is $169.54, an increase from $123.84 in September 2022. This increase is due to retail generation supply costs, base rates, and PUCO-approved riders.
To help consumers navigate these high energy costs, the Public Utilities Commission of Ohio offers an apples-to-apples comparison tool. This tool allows customers to compare rates and terms of their current energy supplier with other providers, giving them options to potentially find a better deal.
While these high energy bills are causing frustration for customers like Eron Smith in Colerain Township, it is unclear when prices will stabilize or decrease. It is important for consumers to explore their options and consider switching energy providers if it can lead to savings.
– Public Utilities Commission of Ohio
– Eron Smith, customer
– Sally Thelen, spokesperson for Duke Energy
– Jim Mathers, president of Energy Professionals