Natural Gas Regulation in Alberta – What You Need to Know
The regulation of natural gas services in Alberta has set out the standards for the service you get and the price you pay. Keep reading to find out more about how the regulation of natural gas affects your service and rate.
You Are Required to Choose a Regulated Natural Gas Service
You are made to choose a regulated natural gas service if it’s your first time getting this type of service. You can then shop around and find a retailer that offers you the natural gas pricing and services you want without paying a contract exit fee.
Your Natural Gas Rate Will Fluctuate Each Month Using Regulated Service
Regulated natural gas service rates are built around the actual cost to procure it from the market. The market rate for energy resources changes every trading day. It means you will have a variable rate that leads to unpredictable billing. It’s not ideal for those that like a set amount on their bills. You can better predict a rise or drop in price by routinely watching the market reports.
All Rates Are Regulated By the Alberta Utilities Commission
The AUC or Alberta Utilities Commission is the regulatory agency that oversees and evaluates the rates for regulated natural gas customers. The pricing has to be in line with and reflect current market rates and must be adjusted to compensate for the rise or lowering of the price. The goal is to give customers the fairest rate possible while maintaining enough funding to provide service maintenance, repairs, and upgrades when needed.
You Are Not Bound By Contract With Regulated Natural Gas Service
You do not have to sign a contract to have regulated natural gas service as you would using a retailer of this energy resource. Establishing service with regulated natural gas in Alberta is a simple process allowing you to move on to a retailer without penalty at any time.
Regulated Rates Reflect Current Market Prices Without Marketing Costs
Energy providers try and make the way the cost is calculated for natural gas as simple as possible. For example, a service provider like Direct Energy calculates the rate you are paying by multiplying your usage by the current market price of this energy resource, plus or minus any amounts that were over or under-charged for the previous month. Regulated services don’t have to be marketed like retailers, which means you aren’t paying for any marketing costs.
You Are Subject to Market Price Volatility
Sudden sharp increases in the price of natural gas on the market will cause a dramatic rise in your bill. Since most of the natural gas you’ll use is domestically sourced, the volatility of internationally sourced energy products is affected more by international events and disasters. Increased demand during extreme seasons can make your rates climb.
Regulated Pricing Histories for Alberta Show Downward Cost Trends
The good thing about natural gas in Alberta is the pricing history shows that the cost of using this energy resource in your home is heading down. Every month has shown a lowered rate from the previous year. Regulation of natural gas in Alberta has helped make it a more affordable energy option.
Contact your local service providers today and find out more about regulated natural gas services.