Beginning May 1, 2022, revised rates, to include increased costs at the wholesale power level because of surging natural gas prices, will take effect on SVEC bills.
When considering the overall impact of the changes, the average SVEC residential member consuming 1,000 kilowatt hours per month will see a 6.5% increase in their average monthly bill over 2021.
In 2021, the average residential member monthly bill for the year was $113 at 1,000 kilowatt hours of use. The expected average monthly bill in 2022, beginning May 1, will be $121 for 1,000 kilowatt hours of use. Of this 6.5% rise in expense, slightly more than 2% is tied to costs passed down to SVEC members from Old Dominion Electric Cooperative, SVEC’s wholesale energy provider that has seen an increase in natural gas pricing.
SVEC’s rate changes include setting the basic consumer charge for single-phase residential services at $30 and proportionate increases in the electric consumption component of monthly bills. For more information, please click here: www.svec.coop/2022-rate-revision
As not-for-profit cooperatives, ODEC and SVEC seek to only recover enough revenue to cover operating expenses. That is the foundation for the revised rates SVEC is implementing.
As for ODEC’s costs passing through to SVEC members, natural gas is a significant source of electric generation, even if you do not have natural gas at your home. The high winter demand for natural gas, coupled with cold temperatures, affected the price, and significant volatility on some days drove short-term prices even higher.
Since Russia accounts for 11% of world crude oil output, current energy embargos and the resulting reallocation of European gas imports, along with other global economic factors, further exacerbate price increases and volatility.