Severe weather could lead to energy price spike

Choose EnergyEnergy TipsBill SavingsSevere weather could lead to energy price spike

You survived the Polar Vortex/bombgenesis/bomb cyclone during the first days of the New Year. Now you need to hang in there a few days to survive the Great Southern (and beyond) Blizzard of 2018.

The snow and cold mean that many energy customers have their heating systems turned up to 11. There are two consequences:

  • Using more energy means bills will go up regardless of your energy rate. That will affect this month’s energy bills.
  • Using more energy means natural gas and other mans of powering generation plants will be in greater demand, meaning wholesale prices could spike. That could affect energy bills for months to come.

The latter could mean hikes in retail energy – the kind you buy in deregulated states – are coming.

What can you do about it?

People who will be most affected by increases are those customers of variable rate energy plans. Prices can change month-to-month depending on wholesale energy and energy commodity prices.

The good news. You can switch from a variable rate plan to a fixed rate plan – where you pay the same rate per kilowatt hour (kWh) used throughout the term of the plan. Terms can last from six months to three years or more. It is important to remember that these fixed rate plans usually include early termination fees, so make sure you’re comfortable with that.

Enter your ZIP code above to see what’s available in your area.

The other thing you can, regardless of your energy plan, is to practice energy saving tips.

In the meantime, stay warm and stay safe.

(Photo courtesy of Flickr user/andrea)