Has someone told you to
lock-in your natural gas rate?
We understand the appeal of locking in a gas rate, with the costs of everything rising, households are looking for stability anywhere they can.
Some larger natural gas companies in municipal & urban areas are
advertising the option to lock in your gas rate so we wanted to provide more information for our customers on what that means and
why Iron Creek Gas Co-op Ltd. doesn’t offer this option.
Explore what locking in means......
What does it mean to lock-in your rate?
Locking in your gas rate means setting your gas cost to a fixed amount each month for a set term. So your usage (GJs) fluctuates but your rate doesn’t.
Does a fixed gas rate mean all charges on your bill are fixed?
Not necessarily. What many companies omit is that there are A LOT of extra fees and charges at different rates that are also added onto your final bill, usually multiplied by your usage (GJs).
Why doesn’t Iron Creek Gas
Co-op offer this?
We are a rural, not-for-profit gas co-op. We buy our gas monthly so the cost fluctuates. We cannot buy natural gas at a higher rate than we sell it but neither can other companies! See below to understand how other companies recoup the cost of offering locked gas rates.
Below is an actual bill breakdown and comparison between a large natural gas company with a locked in gas rate and Iron Creek Gas Co-op.
From above you can see that yes, the gas cost was higher as it fluctuated however because we are a not-for-profit co-operative we keep our administrative and system fees low and stable with no hidden, extra costs. Because of how we are structured we cannot offer locked in rates, however we, as well as our gas supplier, work monthly to keep costs as low as possible for our customers.
If you have any questions or concerns regarding your gas bill please contact our office!