Direct Energy Regulated Servicesâ€™ natural gas rate is $4.43/GJ in February and 13% lower^ than the average fixed rate.Ìý
Thanks toÌýwarmerÌýweather and lower demand, the regulated natural gas rate in Alberta has dropped significantly since February 2023.ÌýAnd the good news is that itâ€™s forecasted* to remain low throughout 2024! Thereâ€™s no better time than now to be on the regulated rate for natural gas.
The regulated rate is set based on the market price of natural gas, which fluctuates according to several global and local factors. In 2023, natural gas prices dropped significantly due to warmer weather and lower demand, causing the regulated rate to be lower than fixed-rate plans available in the market at the time.
We know that the market price for natural gas fluctuates depending on factors and circumstances worldwide, similar to gasoline for your vehicles. Based on market conditions, our team at Direct Energy Regulated Services estimates how much natural gas our customers will need and how much it will cost us to buy it from the producers in the month ahead.Ìý We also adjust depending on whether the rate from the month prior was too low or too high.
If the rate forecast was high, and we collected too much from you this month, then that extra amount is subtracted from the next monthâ€™s rate. If itâ€™s low, we add the excess to the next monthâ€™s rate. Since weâ€™re a regulated service, you can rest assured that the prices you pay are as fair as possible. Finally, we submit our rate to the Alberta Utilities Commission for review and approval.
Direct Energy Regulated Services does not influence the distribution and other fees you might see on your bill. However, we work hard to ensure our pricing for natural gas is accurate, consistent and fair based on current market conditions.
Read more aboutÌýhow we set our natural gas prices.
*The forecast is based on the current forward wholesale natural gas price curve on January 25, 2024, and will not be the exact rates. Natural gas rates can change suddenly based on weather, unplanned infrastructure outages, and global events.
^Based on an average of the lowest advertised 5-year fixed rates from Atco Energy, EasyMax, Encor, and Direct Energy as ofÌýJanuary 25, 2024.