It’s hard to believe, but the summer is slowly winding to a close. Even though days are still long and temperatures are high, now is when you want to start thinking about your natural gas contract.
Many businesses, non-profits, and residential consumers only consider their natural gas rate in few instances. It may be when winter arrives and the heat gets turned on or simply when your current contract expires. After all, for most, natural gas comprises a relatively small percentage of monthly expenses.
There is however a number of non-residential entities that pay a considerable amount for natural gas through the winter. This includes manufacturers, hospitals, schools, and even churches. In some cases, reducing rates by a matter of cents can add up to thousands in annual savings.
We have seen the adverse effect a cold winter can have on the budget. Just think back to the beginning of 2014 when the nation was overcome by the polar vortex. This of course was unexpected for most and hit many hard in the wallet.
Now though is the perfect time to negotiate your natural gas rate. Currently, gas reserves are up more than 5 percent over last year and prices have trended down these past 12-months. As we get closer to the winter season, the prices will go up. This is a function of supply and demand. Purchasing now enables you to capitalize on lower rates. If you signed a 12-month contract at a higher rate, renewing now will save you money during the following winter.
You have several options for exploring a natural gas contact. If you are a smaller consumer, there are programs through your utility and local brokers you can work with. Be sure to understand the terms of the contract offered and the fine print. Consult an energy advisor if you are unclear about any terms in the contract.
Additionally, most local chambers of commerce will offer their membership what is known as community aggregation programs. If you are not already part of your local chamber, you may want to consider exploring the many benefits they can offer.
If you are a larger consumer, spending perhaps $10,000 monthly on energy or more, there are additional options available to you. The market has become rather sophisticated with a number of products to select from. Though you may be experienced in managing your companies’ energy portfolio, it certainly would benefit you to explore options with your energy advisor to ensure you are making the most informed decision.