The 2025 and 2026 forecasts indicate a significant increase in natural gas prices, primarily due to rising demand outpacing supply. Market dynamics are predicted to have an impact on many businesses with substantial natural gas usage. As prices rise for natural gas, the electric markets tend to also increase.
Why Are Natural Gas Prices Rising?
There is a growing demand from U.S. liquefied natural gas (LNG) export facilities, which consume a larger share of the domestic gas supply. This reduces the amount stored and available domestically compared to the last two years. This increase in demand, especially exports, leaves less natural gas in storage, resulting in higher prices.
According to the January Short-Term Energy Outlook (STEO), the U.S. benchmark Henry Hub natural gas spot price is expected to average $3.80 per million British thermal units (MMBtu) in 2025 and increase to $4.20/MMBtu in 2026. This represents a significant rise from the record lows experienced in 2024.
What Does This Mean for Your Business?
Rising costs could impact businesses that rely heavily on natural gas and electricity for operational needs such as heating, production or power generation. The increase in expenses could significantly impact their bottom line. However, there is a proactive step you can take to mitigate this impact: utility bill audits.
How Can a Natural Gas Audit Help?
A utility bill audit involves thoroughly reviewing your natural gas and electric bills to ensure you are not being overcharged. Auditors look for billing errors, incorrect meter readings, and whether the rate applied to your usage is the best option based on your actual consumption patterns and needs.
- Identify Billing Errors: Sometimes, simple meter readings or data entry errors can lead to overcharges. An audit can spot these discrepancies.
- Ensure Rate Accuracy: Are you on the best rate plan for your needs? As prices fluctuate, what was once a good deal might no longer be optimal. An audit can determine if there’s a more cost-effective option.
- Detect Unseen Overcharges: Audits can uncover obscure discrepancies you might not know, such as charges for services you do not use or incorrect tariff applications.
Given the projected increase in natural gas and electricity prices, conducting a utility bill audit could be more crucial than ever. When you ensure your natural gas utility bills are accurate and that you’re on the most cost-effective rate, you can achieve savings and manage your expenses as energy costs rise. Detroit Country Day had a natural gas audit, and it helped them save over $120,000.
As natural gas prices are expected to rise, proactive measures such as regular utility bill audits can help safeguard your business from unexpected costs and maintain financial stability. Don’t wait until the prices peak—consider scheduling a utility bill audit today to prepare for the changes ahead.
Source: E.I.A.