Back in the fall, consumers were seeing news articles all over the place warning of higher natural gas prices and encouraging customers to lock in at a fixed rate. Some headlines even suggested there was “no end in sight for rising natural gas prices.” Well, after that was written in September, the end has shown itself just a few short months later in January.
Direct Energy Regulated Services’ (DERS) regulated natural gas prices are back below $4 per gigajoule at just $3.893 /GJ for the month of January 2022. Meanwhile, the big guys are all offering natural gas contracts at prices over $4 /GJ. While we could see a brief adjustment in daily wholesale prices as a result of this three-week deep freeze, expected warmer temperatures should result in lower demand and lower daily prices as a result. Natural gas prices can be closely tied to the weather and have some volatility as a result. It can be helpful to take a step back and look longer term.
Looking longer term, the Alberta Energy Regulator expects to see a gentle increase in natural gas prices from now until 2030. However, even with these forecast increases, its base case only has natural gas prices increasing to an average of $3.87 /GJ by 2030. While these are annual averages and there could be higher priced and lower priced months within those years, it shows that gas service from DERS will continue to be a great choice. Because our rates are regulated, you can rest assured you will never overpay for gas. Even if our forecast is a little high in a given month, we have to adjust our rate the following month to account for any extra amounts we may have charged our customers, so your rates are always fair.
We have previously outlined that DERS’ gas rate over the past two years has been, on average, significantly lower than those of the other major providers. This is partially because here at DERS, we don’t need to factor a big risk margin into our rates because they are set the month ahead. As we outlined in another blog, the rate you pay for gas is almost entirely comprised of the wholesale price of natural gas. Other retailers may offer a floating rate, but in almost all cases there is an additional charge on top of the gas price on a per GJ or per day basis. At DERS, our market rate is what you will pay for gas.
With Direct Energy Regulated Services, you can be confident that we have you covered with natural gas prices that are set using a transparent and market-based method. If you are looking to join us for the first time, or want to rejoin us, signing up online is fast and easy. If you would prefer to speak to someone, you can reach one of our friendly customer care agents at 1-866-420-3174 and they will be happy to get you set up. Existing customers are able to keep track of their account and set up automatic payments through our Online Account, giving you one less thing to worry about. Natural gas service from Direct Energy Regulated Services has been, and will continue to be, a great option to keep your home energized all year long.