KANSAS CITY, Mo. — According to 2021 data by the U.S. Energy Information Administration, households can expect to see their heating bills jump as much as 54% this winter. Experts say this is due to the current state of supply and demand.
The biggest reason for higher bills is the recent surge in prices for energy. Prices fell to record lows in 2020, and since then, demand has grown faster than production as the economy bounces back from the pandemic.
“Natural gas is a product that is used in homes, businesses, manufacturing businesses, and demand is still very high for our product,” said Atmos Energy’s Manager of Public Affairs, Aaron Bishop.
Inventories for propane and natural gas are already lower than usual, but the global demand has gone up exponentially. Due to the high demand, natural gas in America is at its highest price since 2014 — up roughly 90% over the last year.
On top of supply and demand, experts think it will be a colder winter. Bishop says his team prepares for times like this and predicts prices will level out around spring.
“We’re able to stockpile other storage fields at times when prices are low,” Bishop said. “This is sort of what we gear up for is, really preparing for winter and making sure that our customers not only have the supply that they need to keep their homes warm during the winter but also try to curb those crazy swings in pricing.”
Households that use natural gas can expect to see a 30% increase, about $746 more this winter. Households that use electricity can expect to see a 6% increase, about $1,268 more this winter.
Homes using heating oil will see about a 43% increase, more than $500 additionally this winter. And households that use propane can see about a 54% increase.
Local experts say to keep bills at bay, turn it down and layer up.
“Follow all of the advice your parents gave you when you were kids, you know?" Bishop said. "Put on a coat, keep the doors shut, take shorter showers … A lot of those are some great ways a customer can help manage their energy usage.”
For anyone who needs assistance with payments, Bishop says Catholic Charities, The Salvation Army and county resources may be places to start.
Energy Efficiency Representative, Chris Wright, with Spire Inc. also says opening drapes during the day to let in natural sunlight and then closing them in the evening can help retain heat. He also advises replacing furnace filters to maximize their efficiency and to invest in a programming thermostat.
“Setting your thermostat back 10 degrees for about eight hours of the day … I know a lot of people are working from home right now, but if that’s the time you're away, that can save up to 10%, possibly, on your energy bill,” Wright said.
