Residential Electricity Rates Are Increasing This Summer - Let Us Help!5 minutes 7/14/2022
Posted by, Price To Compare
At Price to Compare, we are committed to helping you and your home save money on electricity costs in deregulated energy markets. We assist homeowners and residents like you with the process of choosing an energy provider that works best for them. We provide detailed information about the different energy providers in your area in a simple, easy-to-read format. We walk you through the process of getting set up with the energy provider of your choice from start to finish.
Our job includes staying up-to-date on the energy market and monitoring changes that may cause fluctuations in energy and electric prices. Many American consumers are already seeing a spike in their electricity rates as we get further into the summer months. Why are electric bills skyrocketing? Energy rates are hitting decade-record highs due to the price of natural gas rising 90% since the beginning of March 2022. We want to unpack the reasons for high electric bills so that you can make the most informed decisions possible regarding your energy provider. We’ll debunk information that seems intimidating so you can focus on keeping your and your household safe and comfortable at home.
Prepare for Higher Electricity Rates for Your Home
When the price of natural gas goes up, so do energy prices. Americans have already seen the price of commodities like gasoline skyrocket. These high prices impact travel plans, budgets, and daily living for commuters. The electricity industry is feeling the impact of natural gas prices increasing, the increase in generation from renewable energy sources, decreased use of coal, and electricity consumption that’s returning to pre-pandemic patterns. (https://www.eia.gov/outlooks/steo/special/summer/2022_summer_electricity.pdf) All these factors are leading to high electricity rates for consumers all across the country. But don’t worry - Price to Compare’s team is still here to provide you with all the information you need - and none that you don’t - to make the best decision for your home when it comes to your energy provider. Demystifying the energy market means bringing you the latest updates in pricing and availability.
The Facts About Residential Electricity Prices
- For the summer of 2022, total U.S. retail sales of electricity is expected to be 0.4% higher than last summer.
- Temperature and humidity levels are primary drivers of summer electricity demand because about 90% of homes in the United States use some form of air conditioning.
- It has been forecast that U.S. residential sector retail sales of electricity during the summer of 2022 will be 2.0% lower than last summer.
Why Are Electricity Prices So High Right Now?
While it is expected that milder temperatures through summer 2022 may lead to electricity prices leveling out a bit, currently, wholesale electricity prices are rising in many parts of the U.S. There is a multitude of complex reasons for this spike, and some are more obvious than others. All these factors contribute to the rising cost of electricity, which will impact many consumers by causing higher utility bills each month. This trend is expected to continue through the end of the year.
The War in Ukraine Is Contributing to Higher Natural Gas Prices
The Russian war on Ukraine is a more minor factor in the spike in natural gas prices than some might think. In 2022, the U.S. became the worldwide leading exporter of natural gas, due to many countries’ refusal to buy fossil fuel from Russia. The country is normally the world’s biggest exporter of crude, fuel, and natural gas - until many nations opted to stop purchasing fuel from them. While the Russian war in Ukraine is having a strong impact on natural gas prices in Europe, it’s only a minor contributor to the rising cost of natural gas in the U.S. Even so, this is one factor that is contributing to the rise of natural gas prices in America, and therefore rising energy prices you’ll notice on your electricity bill.
Varying Demand for Oil and Gas Products
Due to lower demand during the COVID-19 pandemic, nations that are rich in oil reduced production to avoid paying to hold onto their excess oil. As demand has returned to normal - even exceeding what is typical - production has struggled to meet the supply chain needs. Although there is a wide range of sources for electricity, natural gas remains a main source.
Prices Have Been Rising Already
Energy prices have been rising since before the Russian invasion of Ukraine due to many factors - supply chain problems, inflation, and the expectation of the invasion of Ukraine which caused the global market to respond prematurely.
Lack of Natural Gas In Storage Leading to Higher Prices
There is less natural gas in storage right now due to the past couple of years of lower production rates. Spring is the time when gas utility companies normally stockpile supplies in preparation for warmer months when demand is high. Due to overseas demand and concern about restrictions of gas supplies globally, this storage of natural gas hasn’t occurred as it normally would. This means that there is even less natural gas available and what is being produced is in especially high demand. This is another factor that is contributing to sky-high natural gas prices and higher bills for your home.
How Will High Natural Gas Prices Impact Your Home?
You work hard to keep your home comfortable. Price to Compare works hard alongside you to find an energy company that works best for you. During a time when energy prices are at all-time highs, increased electricity bills and higher costs can seem intimidating. How much your bills will increase depends heavily on your provider, where the gas is coming from, and what they’re charging consumers. Our experts at Price to Compare are constantly evaluating competitive electricity and natural gas suppliers. Our quotes are adjusted to fit your exact electricity needs to cut costs as much as possible.
We have a strong network of over 30 major energy suppliers, and our agents are constantly tracking the current market trends so there’s no mystery in choosing the right energy provider. Our promise is to help you lock in the lowest average electricity bill possible, even in times when prices are unusually high. You can count on Price to Compare to ensure that your energy bills are as low as possible in today’s market.
Offset the Cost of High Residential Electricity Prices
There aren’t any quick fixes to a problem like high electricity prices. Some states are looking at their billing practices to address the high price that consumers are paying energy providers. Other places are also looking at long-term solutions such as renewable energy. Wind, hydroelectric, solar, and even tidal power are renewable energy sources that, while expensive to implement on the front end, can have dramatically lower costs in the long run. Price to Compare has options for renewable energy providers that are available if you’re looking to make the jump into green electricity to keep your home comfortable and safe.
Cut Down on Natural Gas Use - Look Into Renewable Energy Options
There has never been a better time to consider investing in renewable energy than when natural gas prices are high. Worldwide, the renewable energy market is exploding at unprecedented rates, despite challenges caused by supply chain bottlenecks and other impacts post-pandemic. Renewable energy is more affordable than ever due to constant technology improvements.
Natural gas prices are increasing much faster than the cost of installing renewable energy, making it a more affordable option in today’s market. Relying more on the grid would reduce electricity costs overall in the long term. Price to Compare can connect you with an affordable renewable energy supplier to help your home stay comfortable and functioning smoothly so you can short circuit high natural gas prices. Price to Compare has a strong network of residential providers with affordable electric plans that can work hard for your home. We can help you find the best one for you and your household.
- Green Energy Plans: No matter what renewable power source you choose - wind, solar, biomass, geothermal, or hydroelectric - Price to Compare can connect you to the right energy provider. Before you reach out to us, check your current electricity bill to see how much of your power is currently renewable. A partial or 100% renewable energy plan might change you and your family’s lives for the better.
What To Do When Your Energy Bills Are High
If your home’s electricity prices are too high, it may be a good time to consider your options. Price to Compare can make the process of switching to a new energy provider simple and painless. Each energy company has complicated plans, different rates, and difficult-to-understand contracts. Price to Compare does all the footwork to gather each provider’s energy sources, rates, fees, and other important information to simplify the process of choosing a residential electric provider. During a season that is can be difficult for you as a consumer, Price to Compare is here to take the work of choosing an electric provider off your plate so you can focus keeping your home safe and comfortable and living your life well.
Pro Tip: Ready to find the lowest energy rate possible for your home? Have your current electric bill handy to compare residential electricity rates in your area.
Pro-Tip: Let Price to Compare produce a residential electricity rates comparison for you and save your home up to 50% on energy bills! Even with high natural gas prices, Price to Compare can gather and compare energy providers’ rates for you to ensure that you’re saving as much as possible on your home’s energy bill.
Looking to Save on Energy Prices for Your Home?
Visit our commercial site, IntegrityEnergy.com, today.