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Gas Prices Explained - How your Bills are Calculated and What you Can Do if You Run Into Problems

By Edited Feb 13, 2014 0 0

Many people receive their gas bills every month and they have no clue what has hit them. You may know the gas prices that your provider quoted you but you have no clue how they total up your bill every month. This article has been written to help you not only understand your gas prices but so you can understand what is going on with your gas bill as well.

Understanding Your Gas Bill

Many people have trouble understanding how their balance due is calculated. So, we have come up with a simple breakdown for you. For every dollar you are spending on gas it is going to the cost of gas, the cost of delivering the gas, the public purpose, and the company’s profit.

  • Cost of Natural Gas – The cost of natural gas is going to be based on the market’s supply and demand.
  • Cost of Delivery – The cost of delivery covers the costs that come in for transporting the natural gas through the company’s pipeline system. This does is not impacted by the price of natural gas.
  • Public Purpose Surcharge - This is the funds that go to the low income customers who need assistance when it comes to paying their bill and conserving energy.
  • Profit – This is the company’s after-tax, net income.

How Customers Can Get Help with Their Gas Bills

Most gas providers understand that some customers are going to be faced with hard financial decisions from time to time that will cause them to struggle to make ends meet because of the state that the economy is in. This is why many of them have programs that they have put in place for customers to take advantage of so they can have some sort of relief. The most common programs that your provider may have available for you are listed below:

  • Bill assistance programs – Bill assistance programs may be available through your provider. Some of the most common types of bill assistance programs include, but are not limited to, discount programs, energy savings assistance programs, assistance funds, and low income assistance help.
  • Rebates and energy efficient programs – Most companies will offer their customer’s special discounts if they use energy efficient appliance in their home.
  • Payment arrangement opportunities -  If you explain your situation to your gas provider they may be kind enough to allow you to make an extension on paying your bill or allow you to pay a portion of your bill.

Overall, your gas bill is not something that is not so hard to understand. Not to mention the fact that if you find that your gas bill is causing you to get into trouble with your finances there are always alternatives available for you to consider. Your gas company understands that the economy is not the best at the moment and that you may have trouble paying your bills at some point yet at the same time you are still going to need gas to make sure you can stay warm during the winter months.

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