Natural Gas prices are projected to rise for the winter season due to the increase in demand of energy that will be required for heating homes and businesses across Ontario. With natural gas prices hovering around 10-year lows, and a narrow balance between the supply and demand of natural gas, prices will rise alongside the demand of natural gas compared to last year’s winter which saw historically higher than average temperatures.
The current upcoming winter is projected to be cooler on average compared to last years winter season, and this means that residents will be turning their thermostats up more compared to last winter. As a direct result, this will increase the overall demand resulting in utilities bumping up their prices.
Ontario’s electricity prices are expected to remain relatively similar in price for the upcoming winter but the average on-peak price is expected to be increased slightly compared to last year’s on-peak price average. This bump in electricity prices is expected to continue to rise in the upcoming years due to a new Green Plan for Renewable Electricity Supply. With greater expansions and investments in the renewable energy industry, this will cause a direct increase to the price of electricity for Ontario consumers for years to come.
The main reasons for the increase in electricity price includes the replacement of aging infrastructure, higher costs of newly contracted power generation agreements, and a cleaner electricity supply with far less environmental impact. Several electricity generators have plans to invest billions of dollars to renew, upgrade and expand their current infrastructure. These enormous investments are subsidised by the consumer on their electricity bill. Of course, this results in an increase in price the consumer has little control over.
A good solution is to lock in your electricity and natural gas rate. Summitt Energy offers price protection agreements for a period of up to 5-years. These programs ensure price certainty similar to a fixed-rate mortgage. As rates increase, yours will not!
For more information visit www.summitt.ca