Energy Costs this Winter
Has your heat bill been higher this winter? Heating costs overall are predicted to be higher this winter – and we have definitely been feeling the effects!
One reason for the volatile energy prices that we have been experiencing is because of high commodity prices, especially the price of wholesale fuel. Since fuel prices have increased, this effect has trickled down to households’ energy bills. This increase in volatility is partially due to the Russian invasion of Ukraine this past year.
Additionally, winter is expected to be more than 4% colder this year than last year. The annual report from the Department of Energy Resources (DOER) cites that households using natural gas for heating will experience a 28% increase in electricity prices from last year, homes using oil will experience a 63% increase, and homes using electricity will experience a 57% increase.
The charts below show average fuel prices from the winter of 2014-2015 to this winter. You can see the steady increase over the past few years, then a large spike in all wholesale prices this winter. These numbers are averaged across all states and distributors in the US.