Do you know which utility costs are rising the fastest?
Looking within the province of Ontario and the City of Toronto, the results may surprise you. It may be difficult to decide which energy efficiency measures would be of the greatest benefit to your building.
Natural gas prices have steadily lowered, but seem to be taking a turn to their past price levels. It should be noted that the prices have fluctuated inconsistently, but this year’s increase may be a sign of things to come.
Electricity also had a period of decrease followed by an increase similar to natural gas. However, its cost levels have had an increase over the years averaging 5.3% annually, and much more consistent than natural gas rates. Electricity should follow its trend upwards in the coming years.
Of the most common utility types, the one which has increased the most (and most consistently) is water. City water has seen a large and steady increase over the course of nearly 10 years. Showing no signs of slowing down, water rates have averaged an annual increase of a whopping 8.5%.
At Efficiency Engineering, we analyze these annual increases and apply them to our savings calculations as escalation rates for each type of utility. This way we accurately calculate the opportunities for your building while taking into account utility cost increases for the future. Energy and water prices will without a doubt continue to rise, but accurately tracking future price levels within the energy calculations will result in smarter choices for the building owner when presented with multiple energy efficiency opportunities.
For Ontario’s historical electricity and gas rates: www.ontarioenergyboard.ca
For the City of Toronto’s historical water rates: www.toronto.ca
Article Submitted by:
Mike Potter, Energy Auditor
Efficiency Engineering Inc.