With utilities like electricity and water, you have a monthly bill that you have to pay a certain rate for. Natural gas, however, is a little bit different. With your natural gas provider, you can choose whether or not you want to have a fixed or a variable rate for your usage.
A fixed rate is pretty self-explanatory. This is a rate that doesn’t change from month to month. Your contract is usually six months or a year, and you pay the same rate for all of those months. The rate is determined before the customer commits to the agreement.
With fixed rates, it is important to know what your contract entails because you will want to know the contract length and how renewal of the contract works. Also, there may be an early termination fee or cancelation fee if you don’t stick through all of your contract.
A variable rate is dependent on the current rate for natural gas in the market. In a variable rate plan, you are at the mercy of the market. This plan is subject to price swings, but the price can swing lower and give you a better rate than a fixed rate plan. With a variable rate plan you have the opportunity to have the lower prices, however, there isn’t any sort of protection if prices do rise. With a variable rate, there is no contract. The customer can cancel the service at any point in time.
Before deciding what kind of plan you would like to do, you can do a little research on what the specific prices of each plan are. Here are our current rates for new customers, and if you have any other questions about fixed versus variable rates, contact Walton Gas.