Electricity prices continue to be the main driver of household inflation.
 
WASHINGTON – Electricity price inflation rose on an annual basis by 4.9%, well in excess of comparable rises in the average American grocery bill of 1.1%, as measured by the Consumer Price Index (CPI). Electricity price inflation continued to exceed the broader CPI, which increased by 2.9% on an annual basis. Electricity price inflation has routinely been more than the CPI and other key commodities.

In a statement, Paul Cicio, Chair of the Electricity Transmission Competition Coalition, said: “Electricity price inflation, driven by accelerating electricity transmission costs has emerged as one of the biggest challenges facing homeowners, farmers and businesses. At fault are Federal Energy Regulatory Commission rules that have allowed tens of billions of dollars per year of large transmission lines to be built without requiring that they be competitively bid to reduce costs for consumers. Competitively bid projects routinely reduce costs by 25-30%. Monopoly utilities do not have any incentive to reduce costs. Competitive bidding of projects can provide legally binding cost caps and the accountability measures that consumers deserve to avoid higher monthly electricity bills. The latest electricity inflation numbers aren’t a wake-up call, they’re a siren.”

Read more about the benefits of transmission competition in ETCC’s comprehensive report.

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