Whether you’re an individual, family, or small business, every Albertan needs reliable access to natural gas services. Whether it’s heating, cooking, or other parts of day-to-day life, reliable, affordable utility access is a must for everyone.
For over 20 years, Albertans have been able to choose their natural gas provider. Rather than using their area’s regulated rate provider, many consumers buy their services from independent retailers (like us!) who strive to offer a better deal. Typically, independent retailers offer either fixed or floating rates for their natural gas service.
However, not all retailers and plans are the same; with a wide variety of options available today, it can be difficult for consumers to choose the right plan to meet their needs.
To help get you started, you’ll find a brief overview of how the price of natural gas is determined, as well as the two main types of natural gas plans available for consumers today. Additionally, you’ll find more information about PowerBill’s fixed and floating rate plans offer Albertans reliable natural gas service with the flexibility to meet their household or business’s unique needs.
Buying Natural Gas from Albertan Distributors
Before PowerBill (or any other retailer) can sell natural gas to our customers, we must first buy it from natural gas distributors. PowerBill buys its natural gas from various distributors across Alberta, depending on our customers’ location. The Alberta Utilities Commission and Alberta Energy Regulator are responsible for transmission and distribution in Alberta, ensuring natural gas arrives safely in your home or business.
The price of natural gas fluctuates daily depending on supply, demand, and other factors. To learn more about the factors that influence wholesale natural gas pricing and to view past rates, visit the Utilities Consumer Advocate website.
Once a retailer has purchased natural gas, it is up to them to determine the price they offer their customers. Most retailers use either fixed or floating rate plans to determine their customers’ natural gas charges.
Floating Rates: Fair Market Value
Floating rate plans adjust natural gas rates every billing period to reflect the current market price of natural gas. When prices rise, so will your cost per GJ for that month. On the other hand, low wholesale prices mean lower energy costs for consumers, meaning your household can benefit from lower natural gas costs when the market is down.
Floating rate plans are ideal for households and businesses who are comfortable paying fair market value for their energy. While they aren’t as consistent or predictable as fixed plans, they also allow households to save on natural gas when market rates are low. If the price of natural gas remains low for an extended period of time, households and businesses can enjoy significant savings compared to what they would pay with a fixed-rate plan.
Fixed-Rate Plans: Simple Stability
Unlike a floating rate that fluctuates with market prices, fixed-rate plans allow consumers to “lock-in” a set natural gas price for a predetermined period of time (typically a year). Regardless of whether the price of natural gas goes up or down, consumers will pay the same amount per GJ every billing period.
Consumers who value stability and predictability tend to prefer fixed-rate natural gas plans. Knowing how much you’ll be charged (no matter the market conditions) provides security and peace of mind that floating rate plans can’t offer. While locking in your rates also means that you won’t be able to take advantage of low natural gas prices, many Albertans find fixed-rate plans make it easier to budget, plan, and control your energy costs.
Which is the Right Plan for Me?
As you can see, both fixed-rate and floating-rate plans have their pros and cons depending on what is most important to you. The right choice for you, your family, or your business will depend on your own unique needs and priorities.
Fixed-rate plans offer consistency for consumers and households. No matter what happens in the natural gas market, you’ll always know how much you’ll be paying for your energy. Especially in large homes that use a lot of energy, fixed-rate plans offer consistent costs that can help with budgeting and planning.
Floating rate plans, on the other hand, allow consumers to take advantage of changes in Alberta’s energy market. When natural gas prices are low, you pay less; it really is that simple! Although the market can rise and fall over time, floating rates remain a good option for consumers who want a fair deal on their electricity and are comfortable with both increases and decreases in costs.
At PowerBill, we understand that every Albertan has their own unique needs and values. That’s why we proudly offer both fixed and floating rate plans for our customers, giving them the freedom to make the best choice for their family, household, or business.
Keeping It Simple with PowerBill
Whether you choose a fixed or floating rate plan, natural gas should be simple. At PowerBill, we believe that no Albertan should have to navigate complicated contracts full of hidden charges to get the service they need. With some of the lowest natural gas rates available today, no hidden markups, no cancellation fees, and transparency every step of the way, PowerBill proudly provides customers with clarity, peace of mind, and value in their utility service.
Keeping it simple also means making it easy to switch! Simply fill out our online signup form and let us take care of the rest; we’ll help you seamlessly transition from your current provider, and get you started with natural gas service made for Albertans.