(BIVN) – Hawaiian Electric customers will likely see higher electricity bills in the coming months, as escalating geopolitical tensions, in particular the U.S. conflict involving Iran, is driving up oil prices and energy costs.
The utility says oil prices surged immediately after the Iran conflict began on February 28th, and have risen about 50% in March.
“As an island state that relies heavily on imported fuel for electricity generation and transportation, Hawai‘i is particularly sensitive to global fossil fuel price fluctuations,” Hawaiian Electric stated in a Wednesday news release, issued just hours before President Trump was scheduled to address the nation on the Iran war. “These increases will affect electric bills, fuel prices and other commodities.”
Residential bills are forecast to rise between 20% and 30% over the next several months. Hawaiʻi Island customers will see those increases in May and June.
“We recognize that Hawai‘i already faces a high cost of living and that any increase in energy costs places an additional burden on our families and businesses,” said Hawaiian Electric Vice President of Customer Service, Rebecca Dayhuff Matsushima, in the news release. “We want our customers to be informed, prepared and supported as we navigate this period together.”
Starting April 6, Hawaiian Electric says it will be offering options to help smooth short-term billing spikes, including 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,” Dayhuff Matsushima said. “Providing interest-free payment options is one way we can help customers manage through temporary cost pressures while continuing to meet their energy needs.”
From the Hawaiian Electric news release:
Why This Matters for Hawai‘i’s Energy Future
This moment also underscores why Hawai‘i is on a long-term path to reduce and ultimately eliminate its dependence on imported oil. Global events like today’s highlight the risks of relying on fuel sources that are subject to geopolitical instability and price volatility. That’s why Hawaiian Electric has been working to diversify the resources used to generate electricity—expanding renewable energy such as solar, wind, and storage, while also pursuing a broader mix of technologies and fuels to strengthen reliability and resilience.
The progress Hawai‘i has made in transitioning to renewable energy is already helping to reduce exposure to fossil fuel price swings. Continued focus on this path is critical for achieving the state’s clean energy goals and providing more stable and predictable energy costs for customers over the long term.
Hawaiian Electric has reduced its use of oil by 55 million gallons annually since 2008 and is bringing more than a dozen fixed-price renewable energy projects online in the coming years.
“A more diverse and locally sourced energy portfolio is essential for Hawai‘i,” Dayhuff Matsushima said. “It strengthens our energy security, reduces our exposure to global market volatility, and supports a more affordable and sustainable future for our communities.”
Hawaiian Electric also offered these energy saving tips to customers:
- Reduce the use of anything that generates heat – water heater, oven, clothes dryer, stove. Consider a heat pump water heater, now available with a rebate of up to $700 from Hawaiʻi Energy. It could cut your bill by up to 40%.
- Turn off air conditioning or set it at 78 degrees. Even turning it off for an hour helps.
- Use smart plugs or unplug electronics when not in use, including computers, printers, cable boxes, game devices and chargers.
- Consider rooftop solar. Hawaiian Electric offers Smart Renewable Energy programs designed to be simpler and more equitable in the long term.
Hawaiian Electric notes the formula for electricity rates is regulated by the Hawaiʻi Public Utilities Commission and includes fuel costs that fluctuate with world markets.
