Behind the Bill:
Our Gas Pricing Explained
A special thanks to Yuka, Operations Analyst, for sharing her insight and expertise about natural gas pricing!
Provision takes great pride in bringing our customers fair prices and reliable natural gas. This blog post will explain the components we consider in setting the prices that you see on your monthly utility bills.
Your prices are mainly dependent on two things: the cost of natural gas, and the cost of transporting it to your homes. Simple, right? Sometimes not. Natural gas prices are constantly changing, depending on the weather and other market forces. Behind the scenes, our trading and operations team is diligently working to find the cheapest deals on the market and the most efficient ways to bring natural gas to your doorsteps.
Here’s a snapshot of natural gas pricing as of May 12, 2021:
The above shows the value of gas for the current and upcoming months. As you can see, pricing during the warmer months (spring / summer) are lower than the colder months (fall / winter). This is because during the cold, more people need gas to heat their homes so the buyer’s market gets more competitive, causing the price of natural gas to go up.
If you have a Variable Rate plan, then you are buying gas at these different prices and are exposed to seasonal pricing fluctuations as demonstrated above. If you have a Fixed Rate plan, then you are locking in a unit price, no matter how these prices change through the year.
Next time you look at your bill, know that the natural gas price is not just a number, there is quite a bit of work that goes into it!
Want to learn more about our affordable clean energy plans?
We provide electricity and natural gas supply plans that go beyond carbon neutral, serving homes and businesses in Ohio and Michigan. By partnering with local distribution utilities through Energy Choice programs, we’re able to offer customized 100% clean energy plans with zero cancellation fees.
