Energy Price Increases for Consumers in 2022

For many of us, 2021 and 2022 have been trying years. The pandemic that began last year continues to affect our daily lives. We’re seeing this reflected in increased energy prices for consumers, even causing some to switch energy suppliers. 

Despite having been impacted by a variety of world events, it’s not all bad news. Given everything that is happening in the world, there are still ways you can save energy. So what is causing such large fluctuations in energy prices and how can you save on energy regardless?

About the Energy Price Changes 

Back in 2020, energy prices dropped significantly due to COVID-19. The pandemic closed down many businesses, schools, and enforced travel bans. While it made many people stay home—increasing household power usage—the travel restrictions and lack of business activity still brought energy demand down overall. 

This led to an oversupply of resources, forcing many energy companies (particularly coal, oil, and natural gas suppliers) to cut production and sell at much lower prices to still garner a profit. 

Fast forward to 2022, and we now have an economy working to recover from last two years. More businesses are reopening, and numerous locations have relaxed their travel restrictions. At the same time, many people continue to stay home frequently. Unfortunately, this created a variety of hindrances making it difficult for the energy sector to instantly meet renewed demands. 

This lack of supply resulted in inflated energy prices. Since utility companies now have to purchase their supply at a higher price, they must increase their rates to cover their costs. 

Tools for Immediate Energy Savings

Despite the highly flexible energy market we have today, there is still reason for optimism. Pandemic or not, there are things you can do today to save energy:

Watch Your Energy Usage

It is more crucial than ever to start trimming our power consumption at home. Thoughtfully take inventory of the energy habits of you and your family, particularly those that wastefully use excess electricity and/or heat. 

For example, do you tend to leave the lights, television, or other appliances on when they’re not actually being used? Or perhaps you leave them off but plugged in when you travel—which still uses electricity. Make it a point to simply turn them off when you leave the room.

Make Your Home More Energy Efficient

Your home can quickly be upgraded to save energy and feel good about doing your part to help the environment. 

For instance, you can program a thermostat to switch to lower, less energy-consuming settings when you are not home. Also during warmer months, install curtains or blinds on the sunnier parts of your home to create less strain on your air conditioning system. 

Consider Switching Energy Plans

Switching to a new energy plan can be the key to better energy savings, especially with prices expected to drop in the near future. 

If you’re in a fixed-rate plan, you might wind up paying more than market value! But in a variable-rate energy plan like the Spring Green 50 or 100, you can save big when energy market values decrease. 

Plus, you can feel great about contributing to a sustainable future since Spring Power and Gas strives to provide energy plans that limit the impact on the environment.

Energy Sustainability in 2022 

The World Bank forecasts a slight energy price increase in the first half of 2022. But prices will likely start falling later in the year when energy companies can get production back to normal and finally meet consumer demands. 

They have also predicted renewable energy sources such as solar and wind power will be more competitive as natural gas, oil, and coal prices remain unstable. 

Efforts to show the reliability and importance of eco-friendly energy sources have nearly always taken a back seat to traditional means. Fortunately, history shows us that sometimes a disruption to the mainstream is exactly what is needed for dynamic new technologies to rise.

Learn More About Energy Prices and Savings With Us

The year’s energy price increase has some consumers worried, but you don’t have to be one of them. With Spring Power and Gas, you can enroll in an energy plan that rewards you for opting into environmentally-focused plans.

Call Spring Power and Gas at 1-888-710-4782 or check out our FAQ to learn more about how our plans work and how you can sign up!