Historically, the summer months have lower natural gas prices as usage goes down throughout the county because consumption from heating is virtually zero. Natural gas is still utilized in the production of electricity and at the moment, this sector may be poised for a huge increase in consumption.
Besides seasonality, what else will affect gas prices?
Currently, coal is the fuel for almost half of the electricity produced in the United States and various pollution regulations are making it difficult if not impossible for this to continue. With the current political agenda and various EPA rules determined to minimize if not completely stop the use of coal for electricity generation, gas is the only alternative that power companies have.
As demand for natural gas goes up, so will prices. In addition, the fall heating months are just around the corner so the normal seasonal price adjustments from anticipated heating demand will begin to move prices upward.
When should you start the process of switching gas providers?
Since the timeframe from start to actual switch of energy providers is typically a couple of months, now may be a good time to at least compare the available rates.
There are a few other advantages that businesses get when they switch energy providers. If your business currently uses your local utility to resell gas to you, you have a variable rate plan. Your prices actually change daily and you are billed for a monthly average. As the cost of gas for your local delivering utility goes up, so does your price.
Most alternate gas providers offer fixed rate, multi-year contracts. This enables your business to lock-in a rate for a few years and not be subject to market fluctuations. An additional advantage is better expense control as you can plan ahead and budget your gas expenses when you have a flat rate.
Do I have to become an expert in the gas market?
Most businesses do not have the time or expertise to research and compare rates from all the possible gas providers in their state. This is where an energy consultant can come in handy. Many energy consultants will do all the legwork for your company and not charge you a dime. The income that they recieve is from your new gas supplier only after a switch in suppliers is made. Therefore, it is to the Energy Consultant’s advantage to find the most competitive gas rates for your business. If your business can’t save money, why should it switch energy providers. If no switch is made, the energy consultant does not get compensated. For a no cost, no obligation gas rate analysis
Also read: https://spendinglessonenergy.com/business-electric-rates/