Read time: 3 minutes
As winter temperatures start to settle in, you might be ready to crank up the heat. Unfortunately, though, keeping your home warm in the dead of winter often means a higher energy bill.
This begs the question, besides just deciding to freeze all winter, is there something that you can do to avoid that cost spike during the colder months?
Most furnaces are powered by natural gas. Which is why, during the winter, most home and business owners increase their natural gas consumption.
What some people don’t realize is that when temperatures drop, in addition to increased usage; people often experience an increase in the rate they pay per unit of natural gas consumed.
When everyone uses more natural gas, we might have to pay more for what we use.
In the winter, you’re not the only one using more natural gas. Almost everyone is using more natural gas. And so, when winter weather takes an unexpected turn, that increase in demand can drive up the price.
Winter 2017 temperatures are forecasted to be 13% colder than 2016.
The NOAA (National Oceanic and Atmospheric Administration) forecasts temperatures across the United States to be 13% colder this winter than in 2016.
How will these colder temps affect gas prices? Well, as of October 2017, the EIA (Energy Information Administration) predicts that household natural gas expenditures to increase an average of $69 this winter than last winter.
What happens if the forecast wrong?
The EIA also states that if this winter is 10% colder than forecasted, then average household expenditures are projected to be 20% higher than last winter. Wow.
On the flipside, if this winter is 10% warmer than forecasted (which would still be colder than last winter), the EIA projects expenditures to be 3% higher than last winter.
What can you do about it?
No matter what the winter does, one of the best things you can do to protect yourself from unexpected spikes in price is to lock in your natural gas rate with an energy supplier (like IGS Energy). That way, if the winter temperatures take a turn for the worst, your rate is protected from a price spike. The supplier takes on the burden of purchasing your natural gas ahead of time so that you can know that your home or business will stay warm at a reliable price, no matter what the energy market does.
Choosing a natural gas rate for your home:
If you’ve never locked in a supplier rate before, it’s way easier than it sounds. All you have to do is choose your rate, tell us a bit about yourself, and we will work with your utility to take care of the rest!
Choosing a natural gas rate for your business:
We know your energy needs are as unique as your business, which is why we would love to create a custom proposal for you.