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Ukraine War, Fast COVID Recovery to Cause Gas Bill Spike Ukraine War, Post-COVID Normalcy to Cause Gas Bill Spike

CNY residents could face about a 39% increase in their National Grid gas bill.

By Sam Corcoran

Natural gas heater
© 2022 Sam Corcoran

SAM CORCORAN: Supply chain practice professor Patrick Penfield was shocked when he learned of National Grid’s projected bill spike. But he says mitigating the costs is easier than most think.

PATRICK PENFIELD: “I think the thing that I’ve been trying to do more of is just controlling my thermostat. So if I’m not there, I turn it down as low as it can go.”

CORCORAN: National Grid understands that this spike will place a financial burden on its customers. Communications manager Jared Paventi says the company has programs in place to help residents.

JARED PAVENTI: “All customers can take advantage of our Budget Billing Program, which helps to mitigate costs during the course of the year.”

CORCORAN: If customers take action, this winter could be fairly painless for them. Sam Corcoran, N-C-C News.

SYRACUSE, N.Y. (NCC News) — Natural gas prices are on the rise due to the war in Ukraine and a return to pre-COVID normalcy, which could see Central New Yorkers paying more for their gas bills this winter.

According to National Grid Communications Manager Jared Paventi, National Grid customers should expect to see about a 39% increase in their natural gas bill cost in comparison to the 2021 average payment. That equals an average $263 increase for customers.

Paventi said this increase is typical in the winter, but due to the war in Ukraine, prices began to increase much earlier in the year.

Jared Paventi, communications manager at National Grid
National Grid Communications Manager Jared Paventi said Central New York’s gas supplier has resources to help customers pay their bills.
© 2022 Sam Corcoran

“Right now, we’re dealing with atypical times,” Paventi said. “When you have low supply and high demand, you’re going to have higher prices.”

That low supply is due to the world’s reliance on Russia for natural gas. The world’s largest nation is known as a major natural gas supplier in the world, and fuels many European and other countries. Paventi said due to their attacks in Ukraine, those nations are looking for alternative places to get their natural gas.

“European nations are looking for natural gas supplies on the open market, which has driven up which has driven up demand,” Paventi said.

The war isn’t the only reason why the demand for natural gas has increased. Paventi said that the return to pre-COVID life has forced suppliers such as National Grid to obtain more gas.

“Because restaurants [and offices] weren’t open, there was less consumer demand for natural gas,” Paventi said. “This is a market correction that we’ve seen from 2020 that has been compounded by the trouble we’re seeing overseas.”

Patrick Penfield, a supply chain practice professor at Syracuse University, said that a bill spike similar to National Grid’s is being seen worldwide.

Patrick Penfield, supply chain professor at Syracuse University
Supply Chain Professor Patrick Penfield said prices should go down once the Ukrainian-Russian war ends.
© 2022 Sam Corcoran

“It’s a global issue,” Penfield said. “When you’re using non-renewable energy sources, the prices will eventually keep going up, especially as the population grows.”

“Once [the Russian invasion of Ukraine] gets resolved, I think we’ll start to see some normalcy with fuel costs,” Penfield added.

Reported by
Sam Corcoran

Sam Corcoran

Sam Corcoran is a Broadcast and Digital Journalism student at Syracuse University's S.I. Newhouse School of Public Communications. He is pursuing a career in sports journalism.

Other stories by Sam Corcoran

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