Understanding Your Natural Gas Bill

Natural gas is used primarily for heating homes in winter but some other common uses include hot water heaters and some stoves. The natural gas bill breaks down in a similar fashion as other utility bills. The components of the bill are as follows.

Customer charge
This is a fixed cost that you pay to the company. It covers administration and maintenance costs.

Distribution charge
This fee covers the cost of delivering gas to your home. It changes with how much gas you use.

Natural gas cost (aka purchased gas adjustment)
This fee reflects the cost of gas purchase, transportation and storage. This fee varies according to how much natural gas you use. This fee will also vary with the market price of natural gas.

Taxes
The government always gets its cut.

Having broken down the charges it would be wise to examine factors that may influence your bill.

Seasonal changes
Since natural gas is used primarily in winter to heat your home, your bill will often rise substantially in winter months and fall in summer months.

Appliance efficiency
The efficiency of central heater, stoves and hot water heaters will also affect your bill. Less efficient appliances used more gas to produce the same amount of heat and thus cost you more. If you are considering buy a new appliance look for the Energy Star logo to ensure that your unit is going to be energy efficient and cost you less money in the long run.

Changes in living habits
If for some reason you have begun keeping your house at a warmer temperature, perhaps to make house guests comfortable, you will be using more gas and pay more. Similarly if you have taken an interest in cooking, you may see a small increase in your gas bill.

Changes in the costs of purchasing gas from gas suppliers
Natural gas prices are dynamic and vary over time according to worldwide supply and demand. If the costs of purchasing gas from suppliers goes up so will your bill.

Payment options for the natural gas bill are usually the same as those for other utilities, checks, credit cards and automatic bank withdrawals. Natural gas companies also offer a budget billing option where they average your use over the last 12 months and then charge you that average number each month.

Some natural gas companies also offer a heat-sharing program. With this program you can donate money to help disadvantaged families pay their heating bills in winter.