Natural Gas With A Variable Rate: The Smart Choice
26 October, 2020
When researching natural gas companies, you start to learn new vocabulary. Price per centum cubic feet (CCF) vs. MCF, utility vs. natural gas provider, and most importantly, variable vs. fixed rate. This terminology can seem confusing and hard to figure out what your best choice is. Natural gas service might not be the first thing on your mind when moving to a new place, but it is an important way to save money in your household. No matter the month, saving money is always in season!
How to get Natural Gas
Natural gas is qualified as a commodity; a raw material or primary agricultural product that can be bought and sold. With commodities, their “worth” is traded on a global scale. This sets the price for natural gas providers, like Kratos Gas & Power, to buy in bulk and provide to you. Certain states have a deregulated energy market, which allows customers to choose their providers. Interesting right? With our team of experts who can navigate this sometimes volatile market, the reward to risk ratio is very high! How does this save you money? Keep reading.
What is a Variable Rate Vs. A Fixed Rate
A fixed rate means that your price for natural gas will always be the same. When you open your bill in the summer and the winter, you will know what to expect. This can be helpful for people who have no wiggle room with their budget and need to know these numbers for planning purposes. A variable rate is based on the price of natural gas in the market. This means that professionals in the field can capitalize on changing prices in the market and can pass that savings to you. Naturally, certain times throughout the year will be more contested than others. Overall Kratos Gas & Power Michigan has consistently been able to save our customers money with their natural gas variable rate.
Understanding Why Bills Prices Change
When switching from fixed to variable rate, some customers experience frustration with seeing prices that may seem higher than their standard rate. This can happen from time to time; but over all, a variable rate will save you money. A fixed rate forces companies to guess what prices will be for an entire year. To ensure their profit margin, they keep their price high and consistent. With variable rates, the price can change day-to-day, even hour to hour, and our experts watch these markets closely. They are able to make on the spot decisions that will save you money in the long run. Consider the length of your contract, are you willing to overpay for gas month after month until it runs out?
Learning and understanding the ins and outs of the natural gas market can seem overwhelming at first, but getting the basics down can help you find the right natural gas company to trust. Check out Kratos Gas & Power’s rates and how they compare to your provider.