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UGI Natural Gas Costs Dropping During Winter Heating Season

01 Dec 2023

Homes and businesses that get natural gas supplied by UGI will see a significant decrease in their cost of natural gas beginning December 1. UGI’s supply costs dropped more than 40%, and those savings will be passed directly on to customers. This is the largest decrease in gas costs in more than a decade.

What does this mean for customers? The average total residential heating bill will drop by over 20%. This will lower the average monthly residential bill from $116.72 to $93.17.

Why is this happening now? Well, when it comes to the cost of gas supply, UGI passes the cost it pays for natural gas supply directly to customers without any mark up; what UGI pays is what customers pay. After several years of higher prices in the natural gas market, the cost has dropped quickly and substantially. Prior to October 2023, the maximum amount UGI could change its rates in a single update was capped at 25%. In order to allow its customers to experience the full decrease in gas costs, UGI requested that the Public Utility Commission allow it to remove the cap on how much rates can be lowered in a single quarter. UGI’s request was granted.

To better understand where you will see the savings on your bill, look at the line on your bill called “Commodity Charge” where you will see the lower rate. The other portion of your bill, the distribution portion, will not be impacted by lower gas costs. Distribution costs do not include natural gas supply costs. The distribution portion of your bill contributes directly towards the maintenance of UGI’s natural gas facilities, ensuring the safe and reliable delivery of natural gas.

For customers who consider their options when it comes to choosing a natural gas supplier, the price to compare has decreased to $0.45335/ccf. For a step-by-step guide on customer choice when it comes to gas and electric suppliers, visit https://www.ugi.com/choice/supplier-information.

Looking for more possible savings this winter season? Did you know that UGI offers a $50 rebate on Energy Star certified smart thermostats? Smart thermostats allow you to establish an energy-saving temperature schedule while you are asleep or away. For a limited time, the UGI rebate can be combined with additional rebates from the manufacturer. Details can be found at https://www.poweredbyefi.org/ugi.