Updated: 9/7/2022
Energy price increases in 2022 have been significant and are causing increased financial stress for businesses around the world. A huge question on many people’s minds is “will energy prices continue to rise?”, and unfortunately, current forecasts predict that prices will continue to increase into 2023.
What causes electricity and natural gas prices to rise?
The price of energy is affected by a number of global and domestic variables such as:
- Supply and demand
- The price of fuel (petroleum, coal, etc.)
- Governmental regulations and taxes
- Increased consumption
- Severe weather
- Global events (war, natural disasters, etc.)
When will energy prices go down?
There are a number of things that could happen that could lower the price of energy. Though, excluding an immediate tax break, they take time.
- Tax breaks
The taxing of fuels, energy generation, transmission, and consumption directly increases the price of electricity, natural gas and oil. If these taxes were lessened, prices would go down. - Regulatory changes
State and Federal regulations heavily affect domestic production of oil, natural gas and electricity and thus affect prices. If regulations were changed to allow more domestic production for example, energy prices would decline over time. - Federal permits
Pipelines like the Keystone Pipeline require permits to operate and be built. On January 20, 2021 President Biden signed an executive order to revoke the permits needed to complete the Keystone Pipeline. If these permits were restored and the pipeline was finished and operating, energy prices would go down over time.
So realistically, energy prices are going to stay high into late 2023 and unless large policy changes are made prices could very well stay high through 2024-25.
What can you do about it?
Luckily, there are steps you can take to reduce your overall energy usage and pay less for electricity and gas. Here are 11 ways to reduce your business’ electricity bill.
If your business is located in a deregulated state, getting a fixed-rate could lower your electricity and natural gas bill and protect you from further price increases.
Getting a fixed-rate means you can lock in the price of energy today and avoid becoming subject to the predicted hike in prices as we enter 2023.
Looking to get lower energy rates? Get a Free Quote today!
