Prepare Now to Protect Against Natural Gas Price Spikes in Winter
Small BusinessAug 12, 2020
In the midst of warm temperatures and sunshine, now might not seem like the right time to think about keeping your business warm during the winter. However, preparing now could help you avoid seasonal price increases on your energy bill that can come with colder temperatures. If your business is located in Ohio, you can secure a fixed rate for your natural gas to stabilize your energy bill during the winter months.
What’s the benefit of securing your natural gas rate?
Utilities are unable to offer a fixed price for natural gas, which means you end up paying the fluctuating market price of this commodity. There are a variety of factors that impact the price of natural gas, including supply and demand, weather and more. Partnering with a supplier to secure a fixed natural gas rate locks in that component of your energy bill and lets you know what to expect for the duration of your contract.
When should I lock in my natural gas rate?
Demand for natural gas is at its highest in the winter when businesses and homeowners are trying to keep their buildings warm. With an increase in demand comes a decrease in supply and consequently an increase in price. Additionally, winter weather can be unpredictable and volatile weather can cause steep spikes in natural gas prices, like the Polar Vortex of 2014. Prices for natural gas tend to be lower in the fall and spring, before and after the winter months. Preparing now could protect your business from volatile winter pricing.
What do I do now?
It’s not too early to secure your fixed natural gas rate. AEP Energy offers a Fixed Price Plan for Natural Gas that lets you do just that. If you’re interested in learning more, contact 1-877-648-1936 to speak with one of our Small Business Energy Consultants.
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