Utilities Are Getting More Expensive in New York: What to Do If You Can't Pay the Bill

As Con Edison seeks state approval for rate increases, many customers are struggling to pay sky-high winter energy bills. Gothamist tells what New Yorkers should do if they can't afford to pay their bills.

Con Ed bills fall roughly into three categories: taxes and fees, the cost of the electricity itself, and delivery costs.

Understanding Con Ed Bills

Taxes and fees include sales tax, Gross Receipts Tax (or GRT), and System Benefit Charge. These are typically state funds and incentives that are passed on to utility customers rather than collected directly from residents.

For example, there are the property taxes Con Ed must pay to the city. They are included in the utility rates. In 2023, the utility and its customers paid $2,4 billion in property taxes to New York City, or 8% of its tax revenue.

The supply fee refers to the cost of the commodity itself, which Con Ed buys on the government market. This is the actual electricity generated by power plants, which are primarily fueled by oil and gas.

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On the amount The cost per kilowatt can be influenced by a number of factors, such as weather, geopolitical events, and economics.

Finally, there is the delivery fee. This is based on rates set by the New York Public Utility Commission. It is on delivery that Con Ed makes its profit. The delivery fee is a little rises every January on a three-year cycle, depending on what the state approves.

Why Your Bills Are Higher This Year

A bitterly cold winter in New York City means customers may have used more energy to keep their homes comfortable. Look under supply charges to see how many kilowatts you've used this year compared to last.

This winter has been the coldest in the last ten years, while the previous two were several degrees warmer. Therefore, the colder it is outside, the more energy is needed to maintain a higher temperature in apartments.

The opposite happens in the summer. Global warming is making New York City hotter every year. People are reaching for their air conditioners in droves. The biggest electricity use days, or peak loads, in New York City are in mid-July.

State Offers Heating Assistance Programs - Read More here. Air conditioning assistance programs can be viewed here.

Delivery rates have increased slightly, as they typically do each year. Con Ed is currently going through an 11-month approval process to raise rates again for the next three-year cycle. Customers who submitted public comments using the form here, can take part in the process.

What can you do if an error occurs?

So, you understand your bill and why it is higher this year. If you still feel like your bill is too high, call your utility company directly.

Con Ed provides electricity to most of New York City and gas to the Bronx, Manhattan, and parts of Queens. National Grid provides gas to Brooklyn, Staten Island, and most of Queens.

Andrea Shapiro, director of programs at the Met Council on Housing, recommends asking your utility company to verify that the apartment you're being billed for has an individual meter, not a shared one.

If an analysis of a customer’s bill reveals anomalies that can’t be explained by temperature fluctuations, the company will evaluate the customer’s meters. This is usually done remotely, since most customers have “smart meters.” If this process reveals a problem, someone from Con Ed will visit the site. Actual meter problems are rare.

If the utility company does not help, the next step is to file a complaint with the Department of Public Utilities.

You can file a complaint here or call 800-342-3355.

"An inaccurate utility bill can result in significant overpayments. The relevant department is committed to returning them to affected customers," assured the department's representative James Denn.

The unit handled more than 42 consumer complaint calls in 000, returning nearly $2021 million in refunds to customers, up 13% from 75.

What to do if you can't pay your bill

If everything on your bill appears to be correct but you still can't pay it, there are a few options.

For customers who can't afford to pay a one-time bill, payment plans and assistance options are available. here. This will help ensure that your service is not disconnected for nonpayment. Additionally, Con Ed has energy accessibility program for low-income clients.

The utility system can be complex. It is recommended that you seek assistance from your local elected officials.

Green Book of New York contains contact information for each of the 51 city council members and five ward presidents.