Predicting the Cost of Your Home Heating
Calculating the cost of energy to run our homes seems like such a mystery at times. But what would you expect from an industry that issues something called a “Market Prices and Uncertainty Report”? That’s one of the publications the federal government creates about the outlook for energy prices (though it’s hard to imagine other business sectors touting “uncertainty” as if it’s a given).
So what’s ahead for natural gas prices this winter and how will it affect the homes around here that depend on this source for their cold-weather heating comfort?
Trying for an uncomplicated explanation here… basically, the cost to heat your home is going to be affected by how much natural gas folks “think” will get used (that’s called a usage prediction). Plus, how much natural gas they “think” will be needed. That’s called a demand forecast. Plus, what’s available now (that’s the inventory).
There’s also a little factor called “speculation,” which is when investors bet on the price energy will reach in the future. And you add to that one more unpredictable factor called “the weather.”
That very frigid winter we “enjoyed” last time hit the inventories pretty heavily. Plus, Mideast unrest always causes concerns about oil exports. So there’s much about energy costs that we cannot control. But here’s the other side of the equation:
There’s a LOT we can do about the energy efficiency of the systems that run your home, thus providing you savings on energy all season long.
If you’d like to learn how to beat the high natural gas prices, you can start with an analysis of the current energy usage in your home. We can do that for you free; just let us know you’d like to get that survey.
Replacing an old energy guzzler with a new, highly efficient model can save 20% over last year’s energy usage – and that’s just one of the perks ahead when you’re ready to make a change. In fact, you’ll find that a very generous trade-in allowance, super-long guarantees and extra convenient financing will make your upgrade decision very easy.