As your trusted energy partner, we strive to be transparent on anticipated changes in pricing. Earlier this year, we predicted that the economic recovery would likely cause natural gas prices to rise with the increase in demand. Our prediction was correct and as a result, starting in January 2021, the average Tampa Electric residential customer's energy bill will increase 8 percent to $105.25 for 1,000 kilowatt-hours (kWh) of use, which is less than customers paid in 2018 and 20 percent below the national average. Commercial and industrial customers will see bills increase between 7 percent and 11 percent compared to 2020 bill, depending on usage.
While the increase is largely the result of rising natural gas prices, a portion of the change is due to the Storm Protection Plan, which will increase the grid's reliability during severe weather. It also includes the addition of a new utility-scale solar project that will come online in January.
The cost of fuel is currently about one-fourth of a residential customer's bill. Fuel costs are passed through from fuel suppliers to customers with no markup or profit to Tampa Electric. Tampa Electric maximizes the use of existing low-cost, well-performing plants and power purchased from other companies to mitigate costs.
We can help you manage your energy use and save money. Did you know Tampa Electric offers more energy-efficiency programs than any other electric company in the state? Check them out and get started saving energy at your home or business.
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