Utility Rates Are Doubling This August – What Businesses Need to Know
August 1st, 2025: Utility rates across the Northeast are expected to double—a sharp jump that will impact electricity and natural gas bills for businesses, municipalities, property owners, and more.
While some price volatility is normal during summer months, this spike is driven by several powerful global and domestic forces converging at once:
Why Are Utility Prices Spiking?
1. The Heatwave Is Straining the Grid
Record-breaking temperatures are sweeping across the U.S., causing a surge in demand for air conditioning and refrigeration. Much of the electricity that powers these systems is generated by natural gas, so:
• Higher electricity demand = higher natural gas demand
• Higher demand = less stored gas for the future
• Less storage = rising prices now and this winter
This isn’t just about staying cool. It’s about paying more—sometimes double—for the same energy.
2. The Trump Energy Bill Could Reshape Supply & Pricing
A newly passed energy bill backed by Donald Trump prioritizes expanded oil and gas production while rolling back incentives for clean energy. While more fossil fuel supply might help stabilize short-term prices, it could:
• Increase U.S. exposure to global fuel markets
• Slow investment in long-term price-stabilizing infrastructure
• Add volatility instead of removing it
This shift means businesses are more vulnerable to price surges when geopolitical tensions rise.
3. War in Iran Threatens Global Energy Flows
Tensions are rising in the Middle East. Iran is threatening to close the Strait of Hormuz, a key global shipping lane for oil and liquefied natural gas (LNG). If blocked, global energy prices could skyrocket—even here in the U.S.
While we don’t rely directly on Iranian gas, global energy markets are interconnected. Any supply disruption in one region causes ripple effects everywhere, and U.S. energy prices could spike as a result.
When Russia invaded Ukraine in 2022, energy prices across the world surged overnight. In New England, utility rates increased significantly. For example, Liberty Utilities’ electric rate rose from $0.094/kWh to $0.178/kWh in just a few months. Rates remained high well into 2023, forcing business and municipalities to absorb the cost or cut spending elsewhere.
This is a clear reminder that energy markets are not local anymore. They react instantly to global threats.
August 2025 Utility Rate Increases (So Far)
These are the rate changes we already know about:
· Liberty Utilities: Increasing from $0.08416/kWh to $0.14811/kWh
· New Hampshire Electric Co-op (NHEC): Increasing from $0.08811/kWh to $0.11500/kWh
· That’s a 75%+ increase in some areas. And more utilities are expected to announce changes before the end of the month.
The Solution: Lock In a Fixed Rate With Neighborhood Energy
Don’t wait until your bill doubles.
Neighborhood Energy is a trusted energy broker serving commercial, industrial, municipal, and multi-housing property clients across Maine, New Hampshire, Massachusetts, Rhode Island, and Connecticut.
We’ve helped hundreds of businesses achieve:
• Budget certainty
• Peace of mind
• Low fixed rates, even when the market is volatile
How We Help You Stay Ahead
• EnergyMAX Reports: We compile all your energy data into one easy-to-read monthly report, helping you identify inefficiencies and reduce usage. It tracks your third-party rate compared to utility rates, giving you transparency and control.
• Reliable Communication: We update you monthly, not just when your contract ends. You’re never left in the dark.
• Proactive Support: We’re not just brokers—we’re energy partners. We’re here to help you navigate every high and low in the market.
Act Now Before August 1st
Rates are expected to spike across utilities on August 1st.
If you wait until then, you’ll be locking in prices after the increase.
• Let Neighborhood Energy help you get ahead of this.
Fixed rates
• Transparent communication and month reports
• Trusted by hundreds of businesses across the Northeast
Neighborhood Energy's consultative process helps you choose the energy plan that best fits your goals, from price stability to cost-saving opportunities.
Get a free quote: www.neighborhoodenergyne.com/free-quote