Why Electricity and Natural Gas Rates are Increasing
Electricity Rates Are Increasing, We’re Here to Help
At Integrity Energy, our job is to help you and your business save money on energy costs in deregulated energy markets. We help small-to-medium businesses like yours choose an energy provider that works best for them. We provide information about the different energy providers available to you in an uncomplicated, easy-to-read format, and walk you through the process of getting set up with the energy provider of your choice.
Staying up-to-date on the energy market means monitoring fluctuations that may cause an increase in energy prices. Unfortunately, as if increasing gasoline prices aren’t frustrating enough, many American businesses will likely see a spike in their electricity rates this summer. Why are electric bills expected to be so high? The rising price of U.S. natural gas will cause electricity rates to hit record highs for the first time in over a decade, as the price of natural gas has risen 90% since the beginning of March 2022. We’re here to explain these rising prices and to provide you with options for your commercial energy provider to save you as much money as possible.
Don’t let increasing natural gas prices and increasing energy bills intimidate you - we’re here to unpack the different factors that are influencing high energy prices so that you can continue to be informed as a business owner. This will allow you to continue to make the best decisions possible for your business to ensure that it can keep running for years to come.
Higher Natural Gas Rates Will Impact Businesses
When the price of natural gas goes up, so do energy prices. Natural gas is burned to produce about 40 percent of the nation’s electricity. This means that energy providers will charge more to be able to make a profit since the natural gas they’re sourcing costs them more to purchase. Integrity Energy’s team of Energy Agents is still here to provide you with all the information you need to make the best decision for your business when it comes to your energy provider. Demystifying the energy market means bringing you the latest updates in pricing and availability.
Why Are Natural Gas Prices Rising?
Natural gas prices in the U.S. are at a staggering 14-year high. 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 natural gas, which will impact many businesses by causing higher energy bills each month. This trend is expected to continue through the end of the year.
The War in Ukraine Is Causing Natural Gas Prices to Spike
The war in Ukraine, driven by Russia, is actually a more minor factor in the increase in natural gas prices than some may 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, which is normally the world’s biggest exporter of crude, fuel, and natural gas. 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 for your business.
Warmer Weather & Higher Demand Impact Natural Gas Prices
Temperatures are expected to rise well above average in many parts of the U.S. this summer. This will lead to an increase in the demand for natural gas, which is used to produce electricity for air conditioning. Extreme weather - hot or cold - can push prices up dramatically due to high demand. Many parts of the U.S. experienced extremely cold winters, and some areas are expected to have hotter than normal summers as well. Consider the utilities your business used more of recently, and how often that usage is determined by the weather forecast.
Lower Supplies of Natural Gas Cause Prices to Rise
Natural gas production came to a halt in 2020 due to the pandemic. The gas industry is still recovering from the impact of COVID-19 and supplies are at much lower levels than usual. The supply of natural gas is still working to catch up with the steady and growing demand for it. With cold winters behind and a prediction of warm summers ahead, demand for natural gas continues to climb while the supply continues to fight to catch up. This will continue to impact the availability of natural gas and energy companies’ ability to obtain it. The U.S. government is urging companies to produce more natural gas, but a significant increase in production could take years.
Inflation - Does It Impact Natural Gas Prices?
Overall economic inflation may seem like it impacts natural gas prices, as we’ve seen with the rising cost of gasoline. Instead, natural gas prices actually are what drive inflation, rather than the other way around. This is because commodities generally respond more quickly to changes in the economy. So, an increase in natural gas prices may not be directly due to inflation, but if gas prices are up, it’s likely that inflation is on the rise. This is something to pay attention to as a business owner to avoid being caught by surprise when prices spike.
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, in turn, higher energy prices for your business.
Rising Prices Across All Energy Markets
The fuel, oil, and coal markets are all experiencing similar spikes in the wake of the Russian invasion of Ukraine. Unfortunately, the gas industry has gotten caught up in the frenzy as countries in Europe and other parts of the world are scrambling to ensure they aren’t lacking supply despite cutting ties with Russia. This turmoil leads to spiked prices all over the map, and this is expected to continue as long as countries decide not to purchase these commodities from Russia. The overall frenzy in the industry will lead to increased natural gas prices and an increase in your business’s utility bills.
How Will High Natural Gas Prices Impact Your Business?
You work hard to keep your business thriving and sustainable. Integrity Energy 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 utility 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 Integrity Energy are constantly evaluating competitive electricity and natural gas suppliers. Our quotes are adjusted to fit your exact energy 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 natural gas rate. Our promise is to help you lock in the lowest average gas bill possible, even in times when natural gas prices are unusually high. You can count on Integrity Energy to ensure that your energy bill is as low as possible in today’s market.
Reducing the Impact of High Natural Gas Prices
There aren’t any quick fixes to a problem like high natural gas prices. Some states are looking at their billing practices to address the high price that consumers are paying energy providers. States 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. Integrity Energy has options for renewable energy providers that are available if your business is looking to make the jump into green energy.
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 energy costs overall in the long term. Integrity Energy can connect you with an affordable renewable energy supplier to help your business grow so you can short circuit high natural gas prices. Give your business an edge by opting for a renewable energy supplier. Integrity Energy has a strong network of commercial providers with affordable electric plans that can work hard for your business. We can help you find the best one for your business.
➤ Green Energy Plans: No matter what renewable power source you choose - wind, solar, biomass, geothermal, or hydroelectric - Integrity Energy can connect you to the right energy provider. Before you reach out to us, check your current energy bill to see how much of your power is currently renewable. A partial or 100% renewable energy plan might change your business for the better.
What To Do When Your Energy Prices Are High
If your business’s energy prices are too high, it may be a good time to consider your options. Integrity Energy 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. Integrity Energy does all the footwork to gather each provider’s energy sources, rates, fees, and other important information to simplify the process of choosing a commercial electric provider. During a season that is can be difficult for you as a business owner, Integrity Energy is here to take the work of choosing an electric provider off your plate so you can focus the sustainability and success of your business.
Pro Tip: Ready to find the lowest energy rate possible for your business? Have your current electric bill handy to compare commercial electricity rates in your area.
Our Services include:
➤ Comparing business electricity rates.
➤ Comparing commercial natural gas prices.
➤ Finding Commercial renewable energy plans.
Just 4 Steps to Save on Energy for Your Business:
- Request a Quote.
- Choose the best plan.
- Save more on your business’ energy costs.
- Get Ongoing Support and Renewal Service.
Pro-Tip: Let Integrity Energy produce a business electricity rates comparison for you and save your business up to 50% on energy bills! Even with high natural gas prices, Integrity Energy can gather and compare energy providers’ rates for you to ensure that you’re saving as much as possible on your business’s energy bill.
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High Quality Service in a High Cost Market
We’re invested in the success of your business! Integrity Energy is committed to providing the fastest response times and most dependable service. You can’t afford to wait at times when prices are extremely high. Our team of energy agents and experts is available Monday through Friday to help you find the best energy provider quickly and efficiently. You’ll have a personal account manager who is always on standby should you have any billing issues. We’re here for you whether you’re setting up the utilities for your business for the first time or making a switch to a new provider to reduce costs.