The Right Natural Gas Plan Makes a Great Gift!
Come the holiday season, we tend to spend more than our typical monthly budget. That makes it even more important to save a little on utility bills like natural gas in GA. Before rates go up in winter with higher demand, now it’s a great time to snag a deal with a new gas plan. Today, the cheapest options are intro rates for variable plans. But is this a smart move? Let’s compare intro rates to fixed to help you choose the right plan.
Comparing Costs of Intro Rates and Fixed
This month, the cheapest rate belongs to a variable rate plan with an intro rate. Intro rates can be super low and appealing, but only last a month or two. After that, rates jump up to the natural gas provider’s standard variable rate. The lowest rate this month belongs to the Gas South Acquisition Variable plan at $0.390 per therm. The standard variable rate for Gas South this month is $1.99 per therm.
On the other hand, fixed rates remain constant throughout the entire term. This month the cheapest fixed rate plan is the Scana Energy 18 Month plan at $0.479 per therm.
It’s easy to look at these numbers and say the intro rate is cheaper and saves more money. However, what if you need a plan for three months? According to the PSC, the average residential customer uses about 51 therms per month. With that estimate, the cheapest intro rate plan costs $19.89 for the first month plus $202.98 for the second and third month. This comes to a total of $222.87 just for the gas you use. Over three months, the cheapest fixed rate plan costs a total of $73.29. That’s a savings of nearly $150.
When Intro Rates Can Be Good Deals
Because standard variable rates are often so much higher than fixed rates, a variable rate plan will almost never save you money after the first month. However, in some situations an intro rate can be a good deal. Here are a few examples of smart times to grab a cheap intro rate:
- You only need a plan for a month or two.
- It’s early fall or spring and you are waiting for fixed rates to drop.
- You may need to cancel your plan and don’t want to pay an early termination fee.
- You need to save as much money as possible and expect to sign up for a fixed rate in the next month.
In these scenarios, the intro rate will save you money. But you should have a plan to switch to a fixed rate, otherwise bills will start adding up quickly as the standard variable rate kicks in.
One More Note on Variable Rates
If you choose to take advantage of a cheap intro rate this month, make sure you understand the terms of the plan to avoid overpaying for your natural gas. This goes for fixed rate natural gas plans, too! You may think you have avoided those high standard variable rates with a fixed rate plan. However, many fixed plans automatically switch to a standard variable rate plan at the end of their terms. So, mark your calendars to start shopping for a new plan in the last month of your contract.
Compare more intro rates and fixed rate plans to find the best plans for you today at https://www.georgiagassavings.com.