An anticipated cold winter combined with an increased demand for natural gas means you may see a spike in your energy bills over the next five months.
Supply chain issues combined with Europe’s energy crisis have caused the price of natural gas to reach a nationwide 14-year high, increasing by more than 60% in the past year. Most residents will start seeing an increase in their bills starting in November.
How much will my bill increase?
Exact estimates differ between natural gas providers.
Delmarva Power, which services 138,000 natural gas customers and 425,500 additional electric and gas customers in Delaware, estimates that the average residential customer will see a total monthly increase of just under $10.
Chesapeake Utilities, representing around 100,000 natural gas customers in the Delmarva service territory, estimates an increase of just over $13 for an average residential customer.
However, the Delaware Public Service Commission and Delaware Public Advocate estimate that prices could increase as much as $25 per month.
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Tips to save
Energy utility bills are dependent on usage, so understanding what methods will save money is important going into the “heating season” (November-March).
- Turning down the thermostat by a degree or two can save a significant amount of money over time
- Keeping your water heater at 120 degrees (or a little lower) can save 10% or more
- Raise or open your blinds to let sunlight in your home
- Make sure your home is properly insulated
Weatherization Assistance Programs are run through Delaware’s Department of Natural Resources and Environmental Control (DNREC) to improve energy efficiency for homeowners and renters.
Financial Assistance
With the cost of living increasing, there is some concern that customers won’t be able to live comfortably and pay their bills on time this winter. According to the National Energy Assistance Directors Association (NEADA), over 20 million Americans are already behind on their energy bills.
A recent survey using data from the U.S Census Bureau Household Pulse Survey found that around 13% of Delawareans were unable to pay their energy bill at least once within the past 12 months, and 20% of respondents said they reduced or went without basic expenses such as food or medicine in the last year to pay an energy bill.
Delmarva Power said that as of August 31, over $26 million was owed in utility payments. Over $9 million of that was able to be recovered through energy assistance programs offered by the state and backed by the federal government.
If you run into problems paying your bills this winter, the first thing to do is contact your utility company to work out a payment plan to ensure that you’re able to live safely without breaking the bank. There are also additional resources available for financial assistance, including grants from programs such as the Low Income Housing Energy Assistance Program (LIHEAP), which just received a $1 billion infusion from the federal government.
Delaware Public Advocate Andrew Slater expects financial assistance requests to increase in the winter. Although resources don’t seem to be a worry, there may be more constraints on how many people can be helped by federal programs.
“What do you do for those folks that are just above low income and may not qualify for low-income programs?” Slater said.
Background:Delaware’s Winter Prediction
Is the climate the culprit?
The changing climate plays a role in the increase of energy bills all across the country.
NASA reported that summer 2022 is tied with 2020 for the hottest summer on record dating back to 1880.
Matt Hartigan, executive director of Delaware’s Public Service Commission explained how this impacts us even in the winter.
“Summer is typically a time when natural gas is stored,” Hartigan said. “With the summer being as hot as it was, there was more demand for natural gas. Now the weather is getting cooler, demand is going up, and the supply is just not there.”
Many coal-fired power plants have been switching to natural gas to produce electricity.
As reported by Delaware Online, the Old Farmer’s Almanac estimated the upcoming winter to bring lower than normal temperatures and increased precipitation – which means Delaware is going to be needing all of the heat it can get.
“The only ray of sunshine may be that prices are expected to fall around mid to late next year,” Hartigan said. “Prices prior to this have been historically low. This is just a commodity and prices go up and down in the market. We’re just unfortunately at the top end at this point.”
