Higher energy prices: who pays them?

A utility pays for them BUT passes the costs through to customers. Utilities do not own the natural gas or they own very little electric generation. They buy on the wholesale market and pay market-based rates. Usually, their payment terms are to buy the gas and electricity but pay for it 60 days after its used. In that way, they use it in the current month, let’s say January, invoice for it in February, and pay the wholesale company back in March. Then do it all again. So, the price they pass through to customers is normally delayed 60 days.

Energy marketers or third-party suppliers buy in the wholesale market and typically repay the wholesale company after 30 days. This means they invoice the current cost immediately. So, there is no delay like with the utilities.

HOWEVER, in both cases the customers end up paying for the wholesale supply. The only question is, do you pay it immediately or after 60 days?

Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan, Indiana and Ohio. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM Index, Fixed and PriceAssuranceTM.

Realgy owns and operates 7 solar plants in Illinois and is looking to invest in additional locations.

Additional Information: https://energynews.us/2022/10/12/natural-gas-prices-are-rising-thats-worse-news-for-ratepayers-than-utilities/