August 31, 2022
Over the past year, you’ve undoubtedly noticed the increasing prices of many everyday goods and services such as groceries and gasoline. Similarly, natural gas prices have also increased. On average, wholesale natural gas prices were more than double what they were last year.
According to the US Energy Information Administration, heating costs could be more than 25% higher than last year.
Why are natural gas prices increasing?
Supply and demand are the primary drivers of natural gas prices. For many years, US natural gas production was strong enough to meet increasing demand. Current events, however, have caused additional demand for natural gas and reduced the available supply. Some of the factors leading to the increased demand include:
- Higher demand for natural gas to produce electricity – especially for summer air conditioning.
- Increased exports of liquified natural gas.
- Geopolitical uncertainty.
- Increased usage as businesses return to normal from the pandemic.
Click here to learn about ways to manage your natural gas costs.
When will gas prices go back down?
Because there are a number of factors that affect supply and demand, there is no way to tell when or how natural gas prices will change in the future.
Why is my Guaranteed BillSM quote higher than last year?
Although gas prices are rising, Guaranteed BillSM customers probably haven’t noticed because their flat bill amount hasn’t changed. As customers complete the term of their Guaranteed Bill plan, they will receive a new, customized Guaranteed Bill quote that is made up of many factors – including the expected wholesale costs of natural gas for the next 12 months. The Guaranteed Bill plan gives you a flat bill amount that averages those costs over the term of the plan and gives you protection against colder weather and rising gas costs.
My fixed price plan is near expiration and the new fixed price being offered is so much higher. Why is it so much higher?
Fixed price plans have been affected by higher wholesale prices, but many fixed price customers will not become aware of this until the end of their fixed price term.
Energy Assistance Options
If you are worried about paying your bill or missing a payment due to financial hardship, there are financial assistance options available to you.