HONOLULU (HawaiiNewsNow) – Hawaii’s electricity customers should brace for possible increases in energy costs in the coming months, driven by rising global oil prices linked to rising political tensions, including the ongoing conflict involving Iran.
As an island nation that relies heavily on imported fuel for power generation and transportation, Hawaii is very sensitive to changes in global fuel prices.
This increase will affect electricity bills, fuel prices, and other utilities.
“We recognize that Hawai’i is already facing a high cost of living and that any increase in energy costs places an additional burden on our families and our businesses,” said Rebecca Dayhuff Matsushima, Vice President of Customer Service at Hawaii Electric. “We want our customers to be informed, prepared, and supported as we navigate this time together.”
Hawaii Electric predicts that average residential bills could rise between 20% and 30% in the next few months. Consumers on O’ahu will begin to see higher rates in April, followed by consumers on the Island of Hawaiʻi and Maui County who will see increases in May and June.
To help ease the impact and provide greater financial flexibility, beginning April 6, Hawaii Electric is offering options to help mitigate short-term rate spikes, including interest-free payment plans for six months. Customer service representatives are ready to assist in creating the best plan based on individual needs.
“We are committed to supporting our community in times of uncertainty and we hope that the price hike ends soon,” said Dayhuff Matsushima. “Offering interest-free options is another way we can help customers deal with short-term pressures while continuing to meet their energy needs.”
Why This Matters
This moment also highlights why Hawaii is on a long-term path to reduce and eliminate dependence on imported oil. World events highlight the dangers of relying on fossil fuels subject to political instability and price volatility.
Hawaii Electric says continuing to focus on this path is critical to meeting the state’s clean energy goals and providing stable and predictable energy costs for customers over the long term.
Hawaii Electric has reduced its oil consumption by 55 million gallons annually since 2008 and is bringing more than a dozen cost-effective renewable energy projects online in the coming years.
“A diverse and locally sourced energy portfolio is important for Hawaii,” said Dayhuff Matsushima. “It strengthens our energy security, reduces our exposure to global market volatility, and supports an affordable and sustainable future for our communities.”
What Customers Can Do
Options are available to help customers manage their electricity bills, including payment arrangements. App links are available at hawaiianelectric.com.
Hawaiʻi Energy is an expert resource that provides discounts and practical energy conservation tips at hawaiienergy.com. Other things you can do now:
- Reduce the use of anything that produces heat – water heater, oven, clothes dryer, stove. Consider a heat pump water heater, available now for up to $700 off from Hawaiʻi Energy. It can reduce your debt by up to 40%.
- Turn off the air conditioner or set it to 78 degrees. Even turning it off for an hour helps.
- Use smart plugs or unplug electronic devices when not in use, including computers, printers, cable boxes, gaming devices and chargers.
- Consider rooftop solar. Hawaii Electric offers Smart Renewable Energy programs designed for flexibility and long-term sustainability.
Oil prices rose immediately after the Iran war began on Feb. 28 and increased by 50% in March. Due to the volatility of the oil market and the ever-changing political climate, it is difficult to predict how long Hawaii will see higher prices for gas, electricity, shipping and other oil-related products.
The rate formula is regulated by the Public Utilities Commission and includes fuel costs that fluctuate with world markets. Hawaii Electric does not make a profit on the fuel used to generate electricity. Under the fuel cost risk-sharing regulatory system, the company’s shareholders have to pay some of the cost when the price of oil rises sharply, causing consumers to lose a little.
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