Top
 

Blog

Breakdown of New York City Electrical Rates

Breakdown of New York City Electrical Rates

What to Expect for New York City Electrical Rates

Electricity pricing is extremely dynamic, especially in the great bustling city of New York. As of May 2019, New York City electrical rates averaged 19.4 cents per kilowatt-hour (kWh). This number decreased from May of last year, when electrical prices averaged 21.0 cents per kWh.

However, just because this number has decreased, it does not mean that New York City prices are at all cheap. In fact, the 19.4 cents per kWh paid for electricity was 43 percent more than the national average in May 2019. The national average electrical rate was 13.6 center per kWh. One year prior, New York City electrical rates were a whopping 54 percent more than the national average.

What makes up these charges?

New York City electrical rates are determined by a few major factors. Primarily, these include delivery charges, supply charges, and taxes.

  • Delivery charges, also known as distribution charges, include the cost of transferring electricity to your home or places of work. The cost remains stagnant across all providers, however, these charges can change on a monthly basis.
  • Supply charges are based on the energy provider you choose. This price takes into account the real market cost of electricity and the overhead costs associated with the business. This cost will fluctuate based on whether you choose a traditional supplier or an alternative Energy Service Company (ESCO).
  • Taxes are based on the area you live or work in. Tax charges are included in the cost of electricity and remain the same whether you choose traditional providers or an alternative service.

What to expect for New York City electrical prices:

Electricity prices in New York City are still well above the national average. This is largely due to surged delivery charges. Mass amounts of energy are being transported into a densely populated area. About 60 percent of New York State’s electricity is consumed by New York City residence, where only 40 percent of the electricity is actually created. Since more electricity is consumed than created, residents have to pay extra to transport it in.

Many other factors come into play when it comes to New York City electrical rates. The important thing to keep in mind is how well you’re being serviced. Apollo Electric is a fully licensed electrical contracting company located in the heart of New York City. We take great care in all the service we provide to our clients. No matter what project you need us to take on, we’ll treat it as our only one.