How to Choose a Natural Gas Company

August 24th, 2007 • Related • Filed Under • by admin

In the last few years the price of home heating oil and natural gas as increased quite dramatically because of the increased demand on the world’s oil supply. That means it’s important as ever to make sure you’re with the right company. Here’s how to make sure you’re getting the best deal and with the company providing the best value.

When comparing prices, don’t compare what come under the line of base charges. Base charges will be identical or close to it for each company that is available, so it’s not a good means of comparison. Some companies lump them all together as base charges, while others separate them into a number f smaller different charges. The actual base charge that you pay will be different from your neighbors, since it’s set by your average demand over the course of the year. The companies just don’t compete on the base charge, so that’s not where you should be looking for your savings.

When it comes to price, you’re going to want to compare the price of gas itself. It’s measured in a unit called therms. Chances are you’ll be quoted by a company for a certain number of cents per therm. This is just the same idea as how many dollars per gallon you’re paying to fill up your car. There are actually three different ways companies set the prices for your gas. Some companies use a floating price each month, others do a fix price for their gas all year long, and some charge you a flat rate regardless of how much gas you actually use. Usually your best way to go is to find the company offering lowest fixed-price per therm and use your natural gas conservatively.

Some companies try to stick customers with what they call a pipeline charge. Ask the customer service representative if they charge a pipeline charge, and if they do, stay away from them. More often than not, consumers will pay a much higher bill on a monthly basis if the company charges a pipeline fee. This isn’t the case for small businesses. Some types of businesses might be better off paying the pipeline fee, such as restaurants.

The de-regulation process for natural gas is still in a bit of a shakeup, so be careful signing a contract. You don’t want to sign up with a company only for it to offer you poor service and for you to be stuck with them. If you do sign a contract, make sure it’s fairly easy to get out of it if you decide you want to go with another company. Companies which offer natural gas are most certainly not all the same. Some offer quality service at a decent price, and others you’ll want to avoid like the plague.