Historically, each household or business had only one energy supplier to choose from – their local utility. In the past several decades, government regulations have been lifted on natural gas supply, opening the marketplace to competition.
Thanks to natural gas deregulation, consumers can compare supplier prices and plans, and choose a supplier they prefer. The Natural Gas Choice program opens the market to competition, creating additional price options for consumers.
Switching Natural Gas Suppliers
When you switch natural gas suppliers, the supplier will purchase your natural gas, while your local utility will deliver it to your home or business. Local utilities will continue to maintain natural gas pipes in your region, and assist you during outages or emergencies.
So, what’s the benefit of switching? When you switch to a natural gas supplier, you have control over your natural gas expenses. From the best price to the most convenient term, natural gas suppliers can offer a wide range of pricing and term options specific to your needs. Dominion Energy Solutions offers a variety of Natural Gas Plans that can help you gain budget stability.
Types of Natural Gas Plans
Typically, natural gas suppliers offer two types of plans – fixed rate plans and variable rate plans. It’s important to understand the difference when choosing which plan is best for you.
Fixed Rate Natural Gas Plans
With fixed rate plans, you’ll lock in your rate for the length of your contract. That means as the cost of natural gas fluctuates due to market conditions, you’ll continue to pay the same cost-per-volume of gas consumed.
Unlike local utility rates, which can vary as a result of the utility’s power purchasing schedule, a fixed rate product protects you from unexpected price increases by delivering your natural gas at the same rate throughout your contract term. Dominion Energy Solutions offers both short and long-term fixed price plans, allowing you to choose the level of price stability that best fits your needs.
Variable Rate Natural Gas Plans
Variable natural gas rates vary from month to month as the market changes. You’ll likely end up paying a different natural gas supply price each month as the costs rise and fall throughout the year. While a variable rate plan allows you to take advantage of price decreases in the market, it does not protect you from price volatility.
Fixed Rate or Variable Rate - Which is Better?
The short answer - it depends. If the price of natural gas increases, you'll be glad you locked into a fixed rate. However, if prices decrease, you’re better off with a variable rate that takes advantage of lower prices. It’s a good idea to review each plan and consider your person needs, as well as any special natural gas offers or fees offered by your supplier.