Home > Resources > What Is A Variable Rate Plan

There are all different kinds of Georgia natural gas prices and plans. Variable-rate natural gas plans offer more flexible contract terms for consumers. Unlike a fixed-rate plan, which locks you into a set contract, variable plans allow for much more breathing room.

This is all based on your natural gas cost per therm. This rate is used by providers to work out your monthly bill - they'll multiply it by how much gas you've used. In a variable plan, this per-therm rate can change, unlike in a fixed-rate plan where it can't change.

This could mean your monthly bills fluctuate, and increase or decrease in price. The cost of your per-therm rate is determined by your provider and depends on the market rates for natural gas.

What Are The Benefits Of A Variable-Rate Natural Gas Plan?

1. Variable rate plans don't have a contract. The rate is month-to-month. That means you won't be locked into a fixed contract or plan. You have the freedom to choose a new provider every month.

2. There are no early terminations fees with a variable-rate plan.

3. You can quickly and easily switch to a different natural gas provider. If you discover another company has a much better deal and price, you can transfer with little fuss. Fixed rate plans with high early termination fees can deter people from switching when they want to.

4. Because the therm rates could increase, natural gas providers often offer variable rate customers a cheap introductory rate for the first month only. The second month, however, that introductory rate usually changes to their standard variable rate.

5. A hybrid version the variable plan that's offered by select providers is a fixed flex plan. A fixed flex plan allows you to alter your per-therm rate once over the course of your contract term.

Is A Variable-Rate Plan Right For Me?

Variable-rate plans are harder to predict than fixed-rate plans, so bear this in mind. If you have a limited budget, a variable plan will not provide you the level of security you need. The price of your bills could suddenly increase, which could cause issues with your monthly budget.

Variable-rate plans can also increase your monthly expenditure at other times of the year. When it gets colder around winter, for example, your per-therm rate is likely to rise. This can cause financial issues around the already costly Christmas period.

However, for those who move house frequently, a variable plan could provide the exact amount of flexibility needed. These plans make it easy to set up a new gas service when switching properties, without inciting any cancellation fees.

Also, because the monthly cost is variable, there's a good chance that your yearly costs could be lower than if you were on a fixed-term plan.

We Can Help You Discover Variable-Rate Plans

In short, variable-rate natural gas plans offer you a fluctuating monthly payment, which could be lower than a fixed plan. You can find local variable-rate gas plans using Georgia Gas Savings - just input your zip code to get started! Once you've selected a plan, you can begin the process of ordering the plan from that same page.

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Updated: 12-13-2018
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