UGI Announces 8.7% Rate Increase for Natural Gas Customers

UGI Utilities, Inc. has announced an 8.7% increase in natural gas rates effective December 1, 2024, a change that will significantly impact consumers' energy costs. The average residential heating customer will see their monthly bill rise from $95.40 to $103.69, an increase of $8.29 per month. This rate hike comes as a result of rising wholesale natural gas prices, which utilities are required by law to pass directly to customers without markup.

Paul Szykman, Chief Regulatory Officer at UGI, explained that the company strives to find the lowest cost supply options for customers, but the increase reflects the general upward trend in wholesale natural gas prices. Despite the rate hike, Szykman maintains that natural gas remains a clean, safe, reliable, and affordable energy choice for homes and businesses.

The timing of this announcement is particularly significant as it comes just before the winter heating season when energy consumption typically increases. This rate adjustment could pose challenges for many households, especially those on fixed or limited incomes. The impact of this increase extends beyond individual consumers, potentially affecting local economies as households may need to reallocate their budgets to accommodate higher energy costs.

Recognizing the potential hardship this increase may cause, UGI is promoting various assistance programs and payment options to help customers manage their bills. The company offers budget billing, which can help spread costs more evenly throughout the year, as well as multiple payment options through their online account center and mobile app. Additionally, UGI is encouraging customers who may struggle with the increased rates to explore eligibility for energy assistance programs, including the federally funded Low-Income Home Energy Assistance Program (LIHEAP).

This rate increase also underscores the importance of energy efficiency in homes and businesses. UGI is urging customers to consider implementing energy-saving measures and is providing resources on their website to help consumers reduce their energy consumption. Such efforts not only help mitigate the impact of rate increases but also contribute to broader energy conservation goals.

The broader implications of this rate hike extend to discussions about energy policy and the future of natural gas as an energy source. While natural gas has been promoted as a cleaner alternative to other fossil fuels, rising costs may accelerate the transition to renewable energy sources in some sectors. This change could influence future energy infrastructure investments and policy decisions at both local and national levels.

As energy costs continue to fluctuate, this rate increase serves as a reminder of the complex interplay between global energy markets, local utilities, and consumer affordability. It highlights the ongoing challenge of balancing the need for reliable energy sources with the economic realities faced by consumers and the environmental considerations that are increasingly shaping energy policy.