Wholesale natural gas supply costs expected to be higher than last winter

With market prices for natural gas expected to increase this coming winter heating season, National Grid is actively promoting bill management programs and options, and increasing outreach to ensure customers are aware of the forecast and have time to take advantage of all available services and tools that can help them save money on their energy bills.

National Grid’s resources include numerous payment assistance programs for income-eligible customers, extensive residential and business energy efficiency programs and incentives, low-cost and no-cost bill management solutions, and flexible payment programs.

“We recognize that higher energy prices will add to the financial burden for our customers who are struggling with higher costs at the grocery store, gas pump and elsewhere,” said Melanie Littlejohn, National Grid’s New York Vice President for Customer and Community Engagement. “Our commitment is to support our customers by helping them stay warm and safe this winter. National Grid has many assistance programs available, as well as energy saving strategies, resources and tips. We are encouraging our customers to take action now, before the cold weather arrives.”

Littlejohn noted that the company is conducting proactive outreach through email, radio advertisements, traditional and social media, customer assistance webinars, and bill messaging to alert customers to higher prices and highlight programs to help them manage their energy bills. Additionally, National Grid is partnering with United Way affiliates across New York to promote the nonprofit’s 211 helpline that provides health and human services information, referral, assessment, and crisis support for callers in need. 

How Current Forecasts Will Affect Winter Bills

Based on current market conditions, National Grid’s residential natural gas customers who use an average of 713 therms during the five-month winter heating season — November 1, 2022, to March 30, 2023 — are forecasted to pay about $263 more than last winter. That’s a 39% increase for the same amount of energy use over five months, with $231 of that increase attributed to higher wholesale supply prices. The remaining portion of the increase is related to delivery price increases approved as part of the company’s multi-year rate agreement and other customer bill surcharges.

For electricity, Central New York residential customers are forecasted to pay about $22 or just under 5% more than last season, with $11 of that increase attributed to higher supply prices, and the remaining amount associated with a regulatory-approved delivery price increase and other bill surcharges. The forecast is based on average electricity use of 600 kilowatt-hour per month.

National Grid plays an active role in managing the natural gas and electricity purchased on behalf of customers by using gas storage and future price hedges, or locked-in pricing. Today’s forecasts factor in the benefit of the company’s hedging strategies, which are helping to mitigate wholesale supply price volatility on customers’ bills. As a reminder, the cost of energy supply is set by the marketplace and passed directly on to customers without markup.

The winter bill forecasts are based on information available at the end of August and assume typical winter weather conditions. Because energy costs and use are impacted by weather and other market factors, the company reminds customers that today’s forecasted figures are approximate and based on a snapshot in time. In addition to weather, factors that determine actual costs are wholesale energy supply prices, global supply and demand, and energy use, all of which can be dramatically impacted by severely cold temperatures. 

Customers who are having difficulty with affording their energy bills are encouraged to contact National Grid as soon as possible. There are several assistance programs for income-eligible customers, including:

Additionally, National Grid Consumer Advocates work directly with customers to help them manage their energy bills. The Advocates specialize in assisting income-eligible and vulnerable customers, aligning them with available programs and services offered by National Grid and local agency partners. They can be reached at 1-800-642-4272 or ConsumerAdvocatesUNY@nationalgrid.com.

Heating a home is one of the most significant energy investments most customers make, and energy efficiency can lower bills while enhancing comfort. Simply put, when customers save more energy, they save more money. National Grid offers the following tips:

“Energy efficiency can lower your energy bills, enhance comfort and make a positive impact on the environment,” Littlejohn said. “Offering these programs and incentives to all our customers, especially those who are experiencing challenges, personifies our Project C commitment to champion social equity within the communities where we live and work.”

National Grid is working with United Way of New York State to support the 211 human services hotline, which connects callers to essential non-emergency public services like food and shelter, referrals to non-profit services, and information about benefit programs. In addition to sponsoring the 24-hour phone line, National Grid’s customer contact center staff will be cross-trained to refer and transfer callers demonstrating a need for services beyond energy affordability to a 211 Community Resource Specialist. Staff at 211 call centers also will receive training to transfer National Grid customers in need of payment assistance to the company’s call center.