Hawaiian Electric gave customers a head’s up today that typical residential bills may rise between 20% and 30% over the next several months due to global oil prices driven higher over the last month due to the war in Iran and other geopolitical tensions.
Oahu customers will start seeing higher April bills, followed by Hawaii island and Maui County customers seeing increases in May and June, according to the company.
The utility relies heavily on imported oil to generate electricity, and under state regulatory rules is allowed to pass on much of the higher costs for oil to customers, and likewise lowers bills when oil prices fall.
“As an island state that relies heavily on imported fuel for electricity generation and transportation, Hawaii is particularly sensitive to global fossil fuel price fluctuations,” the company said.
Hawaiian Electric, which has about 474,000 customers, said it will make options available starting Monday for customers to work with service representatives to spread out bill impacts, including through interest-free payment plans for up to six months.
“We’re committed to supporting our communities during times of uncertainty and we’re hopeful this price surge ends quickly,” Rebecca Dayhuff Matsushima, company vice president of customer service, said in a statement. “Providing interest-free payment options is one way we can help customers manage through temporary cost pressures while continuing to meet their energy needs.”
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