Thursday, January 24, 2013

Increased Energy Regulations Projected - Are You Protected From Higher Prices?


At Conservice, our top priority is helping our clients save money on their utility expenses. We also like to keep you informed about the energy market so you can know when to expect prices to rise and fall. With our OPTIMyZE solution, we'll help our clients in deregulated markets procure lower rates for gas and electricity. Recent news indicates now would be a great time to lock in low rates:
 
Renewed focus on climate change | With extreme temperatures and increased storms hitting the globe, climate change has become a renewed focus for the current administration. In President Obama's inauguration address Monday, he stated, "We will respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations."
  
Increased regulation on energy industry | Efforts to combat climate change have come in the form of increased regulation in the energy industry, adding measures and standards intended to improve air quality, reduce emissions, and encourage the production of renewable energy. As a result of these increased regulations, energy experts are forecasting increased energy prices in the years ahead.

Institute of Energy Research projects increased energy costs |After President Obama's reelection in November, the Institute for Energy Research compiled a list of acts, standards, and new regulations that have been or are projected to be implemented during the President's last term. One of the items on the list, fracking regulation, has recently hit the news. 

Fracking regulations in the news | The Interior Department announced last week that the Bureau of Land Management (BLM) will issue a new draft concerning fracking regulations by March 31 to "make improvements to the draft proposal in order to maximize flexibility, facilitate coordination with state practices, and ensure that operators on public lands implement best practices," said spokesman Blake Androff as quoted in a recent Politico article. While many believe fracking is harmful to the environment, proponents of fracking are concerned that increased regulation could destroy fracking and cause oil and gas prices to rise. The practice of fracking has helped lower oil and gas prices nationwide - but many critics are skeptical and believe the practice is dangerous.

Other policies | Other federal policies that will likely cause oil and gas prices to rise include subsidies to wind, solar, and biomass energy production, and carbon taxes. The Institute for Energy Research is also concerned that limits on where the country can drill for oil and gas will limit supply and drive up costs.

What can you do? | If you are a Conservice customer, contact your account manager or representative.  Conservice provides comprehensive procurement services to help you lock in low rates now. Don't risk higher electricity and/or gas costs in the coming months. Interested in learning more about Conservice? Leave a comment or contact us at service@conservice.com.

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