11/08/2021 by Combined Energy Services 0 Comments
The rise of home energy prices
Tighten supply, slowed production, and natural disasters have all contributed to higher pricing throughout the US.
Winter 2021/2022 could go down with some of the highest home energy prices that we’ve seen in a long time. The U.S. Energy Information Administration (EIA) released its annual Winter Fuels Outlook on October 13, 2021 and the overview of projected energy prices.
Unfortunately, retail energy prices are already at their highest point in several years, and propane is projected to be 54% higher on average this year over last. EIA expects that households heating with propane in the Northeast will be on average 47% more this winter over last. Home heating oil households can expect to spend on average 43% more, up to 59% more if the winter is cold.
The National Propane Gas Association warns in a release dated October 15, 2021 “As the U.S. propane industry nears peak demand season for 2021, propane supply is below the 5-year average range. This does not mean there won’t be enough propane to satisfy domestic customers, but it is critical that propane suppliers and consumer communicate early regarding needs and adjust their supply plans accordingly.”
While Combined Energy Services has storage facilities throughout the Tri-State as well as in depositories in upstate New York, futures pricing affects our pricing. Keeping a close eye on pricing and weather allows CES to have enough supply to match consumers demand. Regrettably, even with their able storage capacities, their pricing follows the swings of the market.
As a consumer, you need to keep an eye on your tank. Automatic delivery is your best option for a reliable delivery. Pre-buy options along with budget billing (starts in April/May) provide some stability in pricing.
While there is no guarantee where the numbers will end up, remember the staff at CES is working hard to make sure that we can effectively serve your home heating needs.