When your business aims at cutting costs to increase the profit margins, often a crucial decision of switching from electricity to natural gas is considered. Businesses often undertake detailed analysis to understand if switching over to natural gas is cost-effective?
Natural gas is claimed to be cheaper than electricity but the associated installation cost inflates the pricing for the overall set-up.
Although platforms like Utility bidder help in shortlisting the most competitive Natural gas suppliers the decision of switching over to natural gas from other fuel resources is a matter of due diligence and cost-benefit analysis.
Electricity Vs Natural Gas
When we compare the prices of oil, propane, and natural gas, natural gas comes out to be the cheapest of all. The best part is, that the prices of natural gas are incredibly low in the US when compared to the other fuel resources.
While natural gas is measured in therms, the unit for electricity is Kilowatts per hour. This difference in the units of measurement often makes the comparison between two fuels difficult. To ease the process, British Thermal Units (BTU) is the easiest way to consider.
Both electricity and natural gas are converted into BTU to make a detailed comparative analysis. 1 kWh of electricity leads to 3,412 BTU and 1 Therm of natural gas produces 100,000 BTU. It is a clear indicator that natural gas is highly cost-effective when compared with electricity.
However, other factors such as utility, application, use, and location also play a vital role in determining the cost of two.
How to choose a natural gas provider?
Only a reliable energy provider can help your business in achieving the goals of cost-cutting and switching to better energy alternatives that are sustainable in the long run.
Here are the 4 steps to choose a reliable natural gas provider:
Analyze your current cost
When you have an in-depth understanding of your current consumption, you are in a better position to choose a new energy supplier which can offer competitive energy plans suiting your needs. Before reviewing the price quotes by other suppliers, analyze your current energy cost.
Reputable customer service
A company that offers reliable customer service is the best deal while finalizing the energy supplier. They should be able to answer your queries promptly and address your concerns in time. Check out their online reviews on various social media platforms to understand their reputation among their existing customers.
Check their historical records to assess if they have some consistent complaints. If yes, how do they deal with such complaints?
Check the license of your energy provider
The supplier offering the natural gas supply in your state should be licensed. If the supplier does not provide you with such crucial information, expecting transparency in pricing from such suppliers is out of the question. Check if the price quoted by the supplier is inclusive of state taxes and other levies or not.
Exercise your power
Once you research the prices and services offered by a reliable natural gas supplier, the next step is to exercise your right of switching over from your existing supplier to the new one. Carefully review the pricing along with the terms and conditions of the new supplier to make a safe move.