The cost of natural gas can have an effect on the price of electricity. Natural gas is used to generate a significant proportion of electricity in the United States, and so changes in the price of natural gas can have an effect on the cost of electricity in the U.S.
The cost of natural gas can fluctuate significantly based on a variety of factors, such as supply and demand, storage levels, and weather patterns.
For instance in 2020, natural gas prices hit a 13-year low as a result of decreased demand stemming from the coronavirus pandemic. Since then, however, prices have risen significantly.
Generally, a decrease in supply or an increase in demand can lead to higher prices. Additionally, cold weather can cause the cost of natural gas to increase as demand for space heating increases.
Other factors that can influence the cost of natural gas include the cost of other fuels, the cost of production, and taxes and fees. These costs are passed onto to the utility company who, in turn, increases rates to you, the consumer.
If increased natural gas prices are reported by the media there’s a good chance your electric bill will increase accordingly.
Our flat rate program does not rely on the natural gas price fluctuation. You are guaranteed the same flat rate for at least 3 years.
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