According to the U.S. Energy Information Administration, this winter, utility costs might be less of a shock to the bank account compared to last year, especially for those using natural gas. Here’s what to expect and how to manage your expenses effectively:
Natural Gas Trends for Winter 2024
Lower natural gas prices and slightly higher consumption this winter mean most U.S. households can expect similar natural gas bills compared to last year. Residential natural gas prices are expected to be lower across all scenarios due to low U.S. Henry Hub spot prices, which have remained subdued in 2024 after declining in 2023.
Regional differences, however, highlight varying impacts:
- Midwest: Households will likely spend 11% more due to colder weather compared to the mild winter last year.
- West: Households can expect to spend 6% less on their natural gas bills.
While national inventories are approaching normal levels after being above average for the past two years, regional factors still play a significant role in expenditures.
For businesses, heating warehouses, offices, and commercial properties efficiently is more important than ever. Here are some actionable strategies to reduce utility expenses this winter:
Maximize Off-Peak Hours
Many factors play a role in what affects electricity prices, from geographic location to current events. You might not be able to do much about foreign activities, regulation changes, or moving to a different geographic location, but you can maximize peak hours for your business. See how hourly, daily and seasonal peaks in consumption can affect electric prices.
Are You Paying Too Much for Gas?
If you use natural gas for heating, there’s a diverse group of competitive suppliers, and you can choose who you use. While you can select your supplier, they are under no obligation to give you the best price, which is why you need to check on your own. If you’re in Michigan, visit Compare MI Gas or the NYMEX Natural Gas monthly price history. Be sure to visit our blog, which covers the nitty-gritty of natural gas costs; it can most certainly be complicated and the task daunting.
Establish Energy Efficient Practices
If possible, share with your employees how much energy is being consumed. Create incentives or competitions to see how low an office can get their energy usage. Have your employees help identify ESG practices or equipment that can contribute to as much as 10% of an energy bill. Unplug equipment not used daily and incorporate smart power strips to ensure equipment is not using unnecessary power.
Energy Bill Audit
A utility audit will evaluate your bills with an in-depth, line-by-line study of your statements and other obscure details. A detailed report illustrates your spending data, use, and potential saving opportunities. Tenurgy auditors love numbers; they will scour your monthly statements for the small details that often go unnoticed and can run up unnecessary expenditures in your gas, electric, waste, water, sewer, and telecommunication services.
Calculate your savings today with our free calculator or book a 15-min call, and let’s help you weather the upcoming winter forecast!
Don’t get caught in the winter storm having to pay unnecessary high utility costs. Beyond maximizing peak times, checking your natural gas costs, and creating an energy-efficient culture, relying on professionals with in-depth utility billing knowledge saves companies internal resources and money. A utility audit is worth it if you want to reduce winter business expenses.
Updated 11/26/24