Buy Natural Gas Under Freedom … Avoid These 3 Costly Mistakes

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Rising natural gas prices have caused many companies to consider for the first time to buy natural gas from other than the primary utility company suppliers. Unfortunately, it is not a simple matter just to see who has the lowest price. There are a lot of potential problems.

1. Only use the NAESB contract with the watermark.

agreements can vary greatly from one company to another. The North American Energy Standards Board (NAESB) has developed a contract that is a good starting with a basic level of certain standards. However, while you may be promised this contract, it can be changed.

Robert Lans Burg, energy analyst with Auditek, a Novato, California firm that monitors utility companies nationwide warns, “If you do not NAESB watermark, tear up the contract. Someone made some changes, and they are definitely not for benefit. “

2. Be clear if there is a penalty for more consumption last year or load.

Offer different as well, and lower prices could actually cost you more. How is it possible? Lower prices can often be based on using the same amount of gas last year, but you’re penalized if you exceed consumption last year, or load. The penalty can wipe out any savings.

If your company has a stable, constant stress, it might not be a problem. But what if there is a particularly cold winter? What if your company finds itself with large orders and increases production significantly? Or, what if you add employees?

3. Do not fix the price for the 100% load phone.

One common strategy is to lock in prices as simple insurance for future increases. Be safe and only go with a 50% load, or if it is an unusual reduction as it was 10 days, you may have thought 75%.

Rising fuel costs are forcing companies to consider raising their rates, a set of new projects, and even shut their doors. After your position, savings for natural gas are typically 5 to 10%. Be aware that shopping around to look at the fine print, and be very clear how long the company has been in business, and in your state.

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