Understanding the Real Impact of High Energy Bills

Many households are concerned about high energy bills and often attribute them to fluctuations in natural gas prices. However, it's important to know that your energy consumption is the primary driver of a high gas bill and not changes in the commodity price of gas. This means that you have control over some of your energy costs by managing your usage.

Myth-Busting: Natural Gas Price Fluctuations vs. Usage 

It's a common misconception that natural gas price fluctuations are the major influence on customer bills. In reality, high bills are often due to increased usage. When you use more energy, your bill increases, regardless of the price of natural gas. By focusing on your energy consumption, you can better manage your costs.

Understanding Fixed and Variable Charges

When managing your gas bill, it's important to understand the difference between fixed and variable charges. Fixed charges are consistent fees that you pay each billing cycle, regardless of your gas usage. These customer charges, also known as system charges, typically cover the cost of maintaining the gas infrastructure and administrative expenses. On the other hand, variable charges fluctuate based on the amount of gas you consume. This portion of your bill can vary significantly depending on your usage patterns, seasonal changes, and the market rates for gas. 
During the summer, when gas usage is generally lower, the majority of your bill is often made up of fixed charges. Conversely, in the winter, higher gas consumption means that variable charges tend to dominate your bill. By being aware of these two types of charges and their seasonal variations, you can better anticipate your monthly expenses and identify opportunities to reduce your overall gas bill.

Factors to Consider When Comparing Bills

When comparing your current month’s invoice to prior month invoices, consider the following factors:

• Number of days in billing period (this can vary between 28 days to 35 days)
• Weather temperatures differences
• Changes in thermostat settings
• Gas price fluctuations

It’s important to note that as a regulated utility, Washington Gas does not profit from the sale of natural gas. The price we pay for gas is passed directly to our customers, meaning you pay the same amount for natural gas as Washington Gas pays its suppliers.

Benefits of Natural Gas Heating

1. Affordability - Natural gas is generally more affordable than electricity. On average, natural gas heating costs about 3.5 times less than electricity.  Households that use natural gas for heating, cooking and clothes drying save an average of $1,132 per year compared to homes using electricity for those applications.  This significant cost difference can help you save money on your energy bills, making it a more economical choice for heating your home. 
2. Reliability - Natural gas is a reliable source of energy, especially during winter storms. Unlike electric heating systems, which can be affected by power outages, natural gas systems continue to operate, ensuring your home stays warm even during severe weather. This reliability means you can count on consistent heating when you need it most.
3. Efficiency - Natural gas furnaces are highly efficient at generating heat. They can quickly warm your home to a comfortable temperature, providing consistent and effective heating. This efficiency means you use less energy to achieve the same level of warmth compared to electric heating systems. If you’re using natural gas, you are benefiting from one of the most efficient heating options available.

Efficiency Comparison: Natural Gas vs. Electricity

Electricity generation and transmission are relatively inefficient. Grid electricity delivers approximately 30–35% of useful energy from the point of generation to the customer. In comparison, natural gas delivers 93–95% of useful energy to customers.  This stark difference in efficiency means that natural gas is not only more cost-effective but also a smarter choice for energy consumption. 

Taking Control of Your Energy Usage

Switching to natural gas heating can be a smart move for both your wallet and your comfort. If you’re considering making the switch, here are a few steps to get started:
1. Evaluate Your Current System: Assess your current heating system and determine if it’s time for an upgrade. Older systems may be less efficient and more costly to operate.

2. Consult with a Professional: Speak with a heating professional to understand the benefits of natural gas and get recommendations tailored to your home. To find a contractor, visit: https://www.washingtongas.com/services/home-owners/find-a-contractor.

3. Explore Incentives: Look for rebates or incentives that may be available for upgrading to a natural gas heating system. These can help offset the initial costs. To learn about rebates, visit: https://wgsmartsavings.com/.

4. Learn about Energy Assistance & Payment Plans: Discover energy assistance and payment plans that can help you manage your bill. For more information, visit https://washingtongascares.com/. 
 
By choosing natural gas, you can enjoy a more affordable, reliable, and efficient heating solution. At Washington Gas, we are here to support you in making the best energy choices for your home. Managing your energy usage is key to controlling your bills.