New Jersey Natural Gas is asking for an approval from the New Jersey Board of Public Utilities to increase its energy tariffs by 5%.
The Basic Gas Supply Service increase will apply for residential and some small commercial customers as from February 1, 2019.
The increase is due to a 44% spike in wholesale natural gas prices for the winter months of December 2018 through to March 2019.
The increase in the price of the gas is a result of growth in demand between October and Novemebr 2018 and the anticipated increase in demand this winter.
The monthly bill for a typical residential heating customer using 100 therms will increase by $3.51, from $96.57 to $101.40.
Steve Westhoven, COO of New Jersey Natural Gas, said: “Colder winter weather has come early and is having a significant impact on wholesale natural gas prices.
“While we are committed to utilising effective purchasing strategies to manage supply, mitigate market impacts, and serve our customers, we, unfortunately, have no control over wholesale natural gas market prices. Even with this BGSS increase, customers’ bills are still roughly 40 percent lower than 2008.”