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 move that will significantly impact residential heating customers. The average monthly bill for residential customers receiving gas supply from UGI is set to rise from $95.40 to $103.69, marking a substantial increase in household energy expenses.

This rate hike is attributed to a general rise in wholesale natural gas supply prices, which utilities are legally required to pass directly to consumers without markup. Paul Szykman, Chief Regulatory Officer at UGI, emphasized that despite the increase, natural gas remains a clean, safe, reliable, and affordable energy choice for homes and businesses.

The timing of this increase, coming at the onset of winter, could pose challenges for many households, particularly those with limited or fixed incomes. In response, UGI is promoting various assistance programs and payment options to help customers manage their bills. These include budget billing, multiple payment methods through UGI's online platforms, and an auto-pay program.

Furthermore, UGI is encouraging eligible customers to explore energy assistance programs and apply for federally funded Low-Income Home Energy Assistance Program (LIHEAP) grants. The company is also emphasizing the importance of energy efficiency, providing resources and tips for customers to reduce their energy consumption and potentially offset some of the rate increase.

This rate adjustment reflects broader trends in the energy sector, where fluctuations in wholesale prices can have direct and significant impacts on consumer costs. As energy prices continue to be volatile, consumers may need to brace for potential future increases and consider long-term strategies for managing their energy usage and expenses.

The increase serves as a reminder of the complex interplay between global energy markets, local utility operations, and household budgets. It underscores the importance of energy policy, infrastructure investment, and consumer education in navigating the challenges of providing affordable and sustainable energy solutions.