Understanding Alberta’s Natural Gas Rates with PowerBill

Jan 20, 2022Blog, Natural Gas

From households to small businesses to largescale industrial operations, all Albertans need natural gas service they can rely on. Across the province, we all depend on reliable, affordable utility services for heating, cooking, and other aspects of day-to-day life.

For the last two decades, Albertan consumers have had a choice about where they buy their natural gas. Instead of relying on their area’s regulated rate provider, many consumers choose to buy their natural gas services from independent retailers (like PowerBill). However, when choosing the right natural gas service provider, it’s essential to know how companies calculate your natural gas rates to ensure you’re receiving the fairest deal available.

If you’re looking to understand how natural gas rates work in Alberta, you’ll find an overview of how PowerBill determines its gas rates below. Additionally, you find more information about how keeping it simple with PowerBill makes fair prices more accessible than ever.

Buying Natural Gas from Albertan Distributors

Before any retailer (including PowerBill) can sell natural gas to their customers, we must first buy it from distributors. PowerBill purchases natural gas from a variety of distributors across Alberta, depending on their location and the location of our customers. Transmission and distribution are regulated by the Alberta Utilities Commission and Alberta Energy Regulator, who are also jointly responsible for ensuring natural gas arrives safely at its destination.

The price of natural gas fluctuates daily depending on supply, demand, and other market factors. To learn more about the factors that influence wholesale natural gas pricing and to view historic rates, visit the Utilities Consumer Advocate website.

Determining a Fair Price for Customers

Many electricity providers don’t like talking about how they calculate electricity rates. While we can’t speak on their behalf, we also know that many retailers often try to work hidden fees, markups, and other charges into their electricity rates. At PowerBill, however, we believe in simplicity and accountability for our customers; as such, we ensure that we’re open and transparent about how we calculate our electricity rates.

Energy charges are calculated in gigajoules (GJ), which measure how much gas you use. At PowerBill, we charge our customers the wholesale cost + $0.89/GJ. PowerBill’s floating rates mean that the amount you pay per GJ will vary month to month depending on the market price of natural gas. 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.

Transmission and distribution charges also affect your monthly costs. Transmission charges cover the cost of moving natural gas from its source to a storage facility, then eventually to a customer’s home. These charges are based on individual customers’ usage.

Distribution charges are based on how easy or difficult it is to get natural through the system to customers. For example, customers in rural areas may see slightly higher charges due to low population density, less infrastructure, and other factors.

Finally, administration fees cover the cost of providing billing, customer service, and other business costs. At a flat rate of $7.50/month, PowerBill’s administration fees are among the lowest in the industry, helping our customers save 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

Natural gas and other utility services shouldn’t be complicated; households and businesses shouldn’t have to deal with long-term contracts and hidden charges to get the right service for them, all at a fair price. With low floating rates for natural gas, no hidden charges, and some of the lowest administration fees in Alberta, PowerBill’s commitment to keeping it simple gives our customers clarity and peace of mind when it comes to natural gas.

At PowerBill, we strive the be the straightforward, easy choice for Albertans. This begins with making it easier than ever to sign up; Simply fill out our online signup form, submit it to us, and let us take care of the rest. We’ll work with you to seamlessly transition from your current provider, and get you started with fair utility service for you and your family.

Ready To Simplify Your Utility Service?

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