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Energy Prices are Soaring…and it May Get Worse!

Updated: Nov 21, 2022

There is no doubt…everything costs more today!

A global pandemic, an unstable national economy, high inflation, supply chain failures and a decreasing workforce is triggering higher prices across the board. The energy market is no exception. Fuel prices have been on the rise for some time now and are about to get much higher.

According to the New York State Energy Research and Development Authority, known as NYSERDA, heating oil prices statewide are 43.7 % higher than they were last year. The price of heating oil for NYC residents and businesses went from $2.98 last year to $4.19 this week. That is a 40.6% increase.

In addition to already soaring energy prices, the impending threat of war in Ukraine with Russia will push crude oil prices to new heights.

In a recent New York Post article, the investment giant Goldman Sachs predicted that crude oil prices could reach “$100 a barrel this year and prices may get as high as $105 in 2023.” They cited high demand, low inventories, persisting pandemic and new global tensions as factors.

Natural gas prices are also on the rise and that’s not just weather related. According a February 11th article in Barron’s, Phil Kagan, advisory leader for natural resources and mining at Grant Thornton stated…“the volatility has also been driven by pandemic-affected demand and an increasingly “interdependent” world supply chain for pipelines…”, “wild swings for natural gas have become more common this year, with prices up almost 31% in January…”

What does this mean for property owners of multifamily buildings?

There is already so much pressure on NYC property managers to retrofit older boiler systems and comply with new decarbonization laws and deadlines. Many of these systems do not run efficiently and waste a lot of fuel trying to provide heat and hot water to building occupants. Now, throw in much higher fuel costs to an already inefficient heating system and it could push bottom lines into the red.

Property owners and building managers must have accurate insight and control over their building’s energy infrastructure. This is only possible with an installation of an Energy Management System (EMS). An EMS will reduce energy and operating cost but more importantly, give owners the 24/7 real time control over their buildings. They will know so much more about their boiler system and gain key temperature data on each apartment.

The cost of installing an energy management system is recouped from lower fuel and maintenance costs. Many EMS companies, such as ours, are partners with local utility providers, like ConEdison, which offer substantial energy management system rebates. Nevertheless, the additional expenditure will significantly counterbalance the expensive fuel increases keeping your balance sheet in the black.

Call or email us at 845-EMC-2020 or and request a free no cost, no obligation energy management system assessment for your building TODAY!



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