Why Is My Home Gas Bill So High? Common Reasons
Understand the core reasons behind your high home gas bill. Gain insight into the various elements impacting your natural gas costs.
A high home gas bill can result from several interconnected factors, including gas consumption, home system efficiency, and market dynamics. This article clarifies common reasons for increased gas bills, exploring both internal household practices and external economic influences.
Your Home’s Gas Consumption
The volume of natural gas used impacts the monthly bill. Colder outdoor temperatures directly increase the demand for heating, resulting in higher gas consumption. Prolonged periods of severe cold weather mean furnaces run more frequently and for longer durations to maintain comfortable indoor temperatures.
Thermostat settings also play a direct role in gas usage; setting the thermostat higher requires the heating system to work harder and consume more gas. Similarly, heating a home continuously, such as maintaining a consistent temperature 24/7, will use more gas than setting back temperatures when residents are away or asleep.
Increased demand for hot water also contributes to higher gas bills, particularly if the home uses a gas water heater. Activities like more showers, frequent baths, or increased laundry and dishwashing directly translate to greater gas consumption. A typical gas water heater can use between 20 to 50 therms of gas per month, varying with usage and size. Other gas-powered appliances, such as ovens, stoves, and clothes dryers, also add to the overall gas consumption, with increased use of these appliances elevates the bill.
Your Home’s Energy Efficiency
Home energy efficiency is a major determinant of bill size. Proper insulation in the attic, walls, and floors is important for preventing heat loss, and inadequate or aging insulation can cause a heating system to run more to compensate. This continuous operation leads to higher gas consumption as heat escapes the living space.
Drafts and poor seals around windows and doors allow heated air to escape, forcing the heating system to work harder. These air leaks mean that a portion of the heat generated is lost to the outdoors, directly increasing the amount of gas needed to warm the home.
The efficiency of the furnace itself is a significant factor. Its Annual Fuel Utilization Efficiency (AFUE) rating indicates how effectively it converts fuel into heat, with higher percentages meaning less wasted energy. Older furnaces, or those not regularly maintained, may operate at lower efficiency, consuming more gas to produce the same amount of heat. Regular furnace maintenance, including filter changes, can improve efficiency and reduce gas usage.
The water heater’s efficiency, influenced by its age, type (e.g., tank versus tankless), and insulation, also impacts gas consumption. An inefficient water heater can waste a notable amount of gas. Leaks in the home’s ductwork can cause heated air to escape before reaching living areas, leading to wasted gas and increased heating costs.
Understanding Gas Prices and Your Bill
External factors, including gas cost and bill structure, also contribute to the total amount. The wholesale price of natural gas can fluctuate due to market supply and demand, geopolitical events, and storage levels. These market changes directly influence the price consumers pay per unit of gas.
Homeowners may choose between variable and fixed rate plans, which affect bill stability. A fixed rate plan maintains a constant price per unit of gas for a set period, offering predictability. Conversely, a variable rate plan’s price per unit fluctuates monthly based on market conditions, which can lead to unpredictable changes in the bill.
Beyond the cost of the gas commodity, bills include other charges such as delivery fees, administrative charges, and taxes. Delivery charges cover the utility company’s costs for transporting gas through pipelines, maintaining infrastructure, and reading meters. State and local taxes also add to the total amount due.
The accuracy of meter readings can affect a bill. Sometimes, utilities provide estimated bills when an actual meter reading is not obtained, based on past usage patterns. If estimated usage is lower than actual consumption, a subsequent bill based on an actual reading may be significantly higher to account for the difference, often called a “catch-up” bill. Additionally, changes in the billing cycle length can make a bill appear higher than previous ones, even if daily usage remains consistent.