Home heating costs expected to increase this winter
As temperatures fall outside, thermostats will get cranked up inside, and forecasters believe those roaring furnaces are going to be a drain on consumers’ pocketbooks this winter.
According to the outlook for winter fuels released earlier this month by the U.S. Energy Information Administration, homeowners who warm their abodes with natural gas will be paying 30% more on average compared to the same time last year.
The picture is even worse for households that heat primarily with propane – they will be spending, on average, 54% more this year, and users of heating oil will be paying 43% more compared to what they did one year ago.
What consumers will be paying also depends on the whims of Mother Nature. If this winter proves to be warmer than normal, heating bills will likely be lower. But if the winter winds blow with above-average ferocity, then the cost could spike even higher than the current forecasts.
“Things are driven by the price of natural gas,” said Todd Meyers, a spokesman for West Penn Power. Natural gas is used to heat almost half of all American homes and is the largest source for electricity generation. As the worldwide economy is pulled out of its coronavirus-induced slumber, demand for natural gas has grown across the globe, while supply has not kept pace.
The good news for Americans, though, is they are not seeing increases comparable to other parts of the world because of the country’s robust natural gas production. The price of natural gas in Europe is set to increase fivefold in the months ahead, due to the fact that last winter was colder in that part of the world than anticipated and whittled down inventories for this year. Another factor: the supply that will be exported from Russia might be limited.
Mark Wolfe, executive director of the National Energy Assistance Directors Association, told the Associated Press in September, “Consumers got used to very low prices last year, because with the pandemic everything was shut down. Now, everything’s coming back online, industry is returning and natural gas is being used again in very large quantities. And that’s pushing up the price.”
Pennsylvania’s Office of Consumer Advocate and the office of Josh Shapiro, Pennsylvania’s attorney general, have advised that residents enroll in budget billing to help even out seasonal fluctuations throughout the year; review contracts with electric and natural gas suppliers; weatherproof doors and windows; and apply for the Low Income Home Energy Assistance Program (LIHEAP), which assists low and fixed-income customers with their heating bills. Grants can range from $500 to $1,500, based on the size of the residence, income and the type of heat used.
Meyers pointed out that consumers can take simple steps to lower their energy costs, such as cleaning or replacing a furnace filter to increase its efficiency, have the furnace inspected annually, close vents in rooms that are not being used, and close drapes, blinds and garage doors to retain heat. He also pointed out that each degree lower than 68 degrees has the potential to save about 3% on a heating bill.
Weatherizing a home can make a big difference when it comes to heating costs, according to Meyers.
“If you add all the little leaks up, it’s like having an open window in the house,” he said.
Several agencies provide grants to residents to weatherize their homes, including the Redevelopment Authority of Fayette County. The grants cover the whole cost, and a crew is provided to carry out work like sealing cracks and installing insulation.
“There’s a tremendous need for weatherization around here,” said Shannon Mahoney-Popson, the authority’s weatherization coordinator, noting the many homes located in rural or hilly regions in Fayette County, and housing stock that is older.
On the upside, the weather could end up cooperating with consumers this year. The National Oceanic and Atmospheric Administration is predicting that this winter will have above-average temperatures in the eastern part of the United States and in the South, thanks to the La Nina climate pattern in the Pacific that also held sway last winter.