How Natural Gas Rates Are Determined with PowerBill

Mar 17, 2021Blog, Natural Gas

From households to small businesses, Albertans need reliable natural gas services. Consumers depend on reliable, affordable utility services for heating, cooking, and other aspects of day-to-day life across the province.

Since 1998, Albertan consumers have been able to choose their natural gas retailer. Instead of using their area’s regulated rate provider, many consumers buy their services from independent retailers (like us!) who strive to offer a better deal. Not all of these companies are created equal, however; it’s essential to know how your utility company calculates your natural gas rates to ensure you’re getting the best deal available for you and your family.

To help get you started, you’ll find a brief overview of how PowerBill determines its natural gas rates. Additionally, you find more information about how keeping it simple with PowerBill can make fair natural gas rates more accessible than ever.

Buying Natural Gas from Albertan Distributors

Before PowerBill (or any other company) can sell natural gas to their customers, we must first buy it from distributors. Depending on the service area, PowerBill buys its natural gas from a variety of distributors across Alberta. The transmission and distribution of natural gas is regulated by the Alberta Utilities Commission and Alberta Energy Regulator; who are also responsible for 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 historic rates, visit the Utilities Consumer Advocate website.

A Fair Price for Our Customers

Some energy companies are reluctant to describe how they calculate their natural gas rates. Sometimes, these companies will often try to work in hidden fees, unfair markups, and other charges into their rates. However, as a company dedicated to fairness and transparency for our customers, PowerBill is proud to share how we calculate our natural gas charges.

Energy charges are calculated in gigajoules (GJ) and are directly related to how much gas you use. At PowerBill, our customers pay the wholesale cost + $0.89/GJ. PowerBill’s floating rates mean that the amount you pay per GJ will vary from month to month depending on the price of natural gas on the market. This is the fairest deal available for consumers today; if we spend less on natural gas, we pass the savings directly to you, no questions asked. Our floating rates are significantly lower than what many larger companies are offering today.

Transmission and distribution charges are also crucial factors in your monthly bill. Transmission covers the cost of moving energy from its source to a storage facility, then eventually to a customer’s home. These charges are based on individual usage.

Distribution costs are typically based on how easy or difficult it is to get to customers. For example, customers in rural communities may see slightly higher rates due to low population density.

We also charge a flat administration fee to cover the cost of providing billing and customer service. At $7.50/month, PowerBill’s admin fees are among the lowest available today, keeping more money in your pocket without compromising reliability or quality of service.

Depending on your service area, customers may see additional charges on their bills. Visit the Utilities Consumer Advocate website for information about Alberta’s energy rates and charges.

Keeping It Simple with PowerBill

Basic needs like natural gas shouldn’t be complicated; households and businesses shouldn’t have to navigate long-term contracts and hidden charges to get the right service at a fair price. With low floating rates for natural gas, no hidden markups, and some of the industry’s lowest administration fees, PowerBill’s commitment to keeping it simple gives our customers clarity and peace of mind when it comes to their utilities. At PowerBill, we strive to be the easy choice for natural gas for Albertans. This starts with making it easier than ever to get started. Simply fill out our online signup form, submit it to us, and let us do the rest. We’ll work with you to seamlessly transition from your current provider if you wish to make the switch to fairly priced utilities for you and your family.

Ready To Get Started?

Sign up now using our online portal, or contact us today to learn more about PowerBill’s utility solutions.