Natural gas prices skyrocket with bills increasing by more than double between December and January 2023
An unprecedented cold snap across the US has caused natural gas prices to skyrocket, with bills increasing by more than double between December and January. Ariel Wesler, guest host of “Inside the Issues” spoke to Jamie Court, president of Consumer Watchdog about this sudden jump in prices. According to Court, Southern California Gas failed to prepare for such a cold winter and more natural gas was exported to Europe due to Russia cutting off gas pipelines amid the war in Ukraine. He stated that "The real problem here is Southern California Gas’ lack of planning. They didn’t plan, and they had to buy it on-the-spot market. And what’s really troubling is they’re buying it on-the-spot market from their parent company Sempra and its subsidiaries at twice the cost."
There may be relief as prices are projected to decrease by 68% in February compared to January
Southern California Gas Co. has announced that its 21.8 million customers may be able to expect some relief from the astronomical natural gas prices they have been experiencing, as prices are projected to decrease by 68% in February compared to January. Gillian Wright, an executive of SoCalGas, commented on this development: “While we’re relieved that prices have dropped significantly since last month, they remain higher than usual for this time of year." The utility attributed the drop in consumer gas prices primarily to a commensurate drop in the wholesale price that SoCalGas will pay for gas in February compared with January.
