Gas Contracts
- Thread starter SkyRider
- Start date
Don't do it. Most are scams. They lock you in at a rate significantly higher than current market price, and then if market price goes above that in the future, their contracts have a clause that allows them to raise your rate. Big scam.
I have kept track each time someone has come around offering me those 'deals'.... so far I have done better by staying with Union Energy.
I don't see how any deal where they can raise the rate for unforseen increases and bail out for unforseen decreases and I have no options can be good for me.
I don't see how any deal where they can raise the rate for unforseen increases and bail out for unforseen decreases and I have no options can be good for me.
Almost got conned into one of these in WNY recently.
Glad I passed on it because prices have dropped since then and I would have been locked into a higher price...
Glad I passed on it because prices have dropped since then and I would have been locked into a higher price...
SCAM! Didn't they just do an hour long show on this on The National or one of those CBC documentaries?
If you can find anyone dumb enough to contract to supply you at the current ten year low rates for years to come, lock them in immediately. But don't expect them to stay in business.SkyRider said:
It's simple: Their guys have nothing better to do all day than forcast the gas business and come up with a price they offer you that will make them money, after they've bought the gas at whatever the future going rates they predict. And they've hedged by buying some of that as future contracts with prices already set, as well. They roll all thet together with a buncha software add on their profit then offer you a rate that makes them money. Don't imagine you'll beat them at their game.
What you are buying—and the only thing you should be thinking about—is the guaranteed rate, a known price over a known period of time, that you can factor into your budgetting. That's all.
Back when these first came out I did sign up for one - and actually saved roughly 20% over a three-year contract. That was before the 'door-to-door' scams started up and I haven't taken a flyer on one since.
However, some of the companies are legit, and although the contract may allow them to change the rates they won't necessarily use that clause because a reputable company will want to keep your business. The legit companies contract to buy a specific amount at a specific wholesale rate from the big gas companies, and then they turn around and sell to residential owners. If they sign up enough people, everybody can win.
Too bad there are so many ripoff artists involved - it can be a legit business if it's done properly. The scammers don't care about selling the gas/electricity as much as they care about signing up more salespeople - sort of an Amway pyramid thing (is Amway still around?).
However, some of the companies are legit, and although the contract may allow them to change the rates they won't necessarily use that clause because a reputable company will want to keep your business. The legit companies contract to buy a specific amount at a specific wholesale rate from the big gas companies, and then they turn around and sell to residential owners. If they sign up enough people, everybody can win.
Too bad there are so many ripoff artists involved - it can be a legit business if it's done properly. The scammers don't care about selling the gas/electricity as much as they care about signing up more salespeople - sort of an Amway pyramid thing (is Amway still around?).
PS:
Commodities contracts are common. That's why companies like Canada Post and Air Canada are still charging 'fuel surcharges' even though the price of oil dropped so dramatically. They're still paying the rates they contracted for when oil was going through the roof.
And they're now probably buying up contracts at the current rates or less. When oil does spike again - they'll still be charging us 'fuel surcharges'.
You can't win.
Commodities contracts are common. That's why companies like Canada Post and Air Canada are still charging 'fuel surcharges' even though the price of oil dropped so dramatically. They're still paying the rates they contracted for when oil was going through the roof.
And they're now probably buying up contracts at the current rates or less. When oil does spike again - they'll still be charging us 'fuel surcharges'.
You can't win.
SkyRider said:
that is not true. sounds like a 'presentation' made by a company trying to lock you in to a contract.
yes. lowest in about 6 or 7 years.... but true analysts know that gas prices will drop much further:
definitely not a good time to 'lock in' prices... and remember anyways, locking in comes with a premium fixed in the price. you always end up paying more.
yeah, apparently there was a trading blip on the NYMX that had gas hit a low of $2.41- which would be a 10 year low if it closed at that price. Gas is currently at $2.61 right now, though.
but, if you count the intraday blips, you'll see in Sept. 2001, gas dropped well below $2.
but, if you count the intraday blips, you'll see in Sept. 2001, gas dropped well below $2.
These guys keep saying NG has to go up in price given the fast depletion rates of wells and lack of new drilling but on the other hand the new shale gas plays are apparently huge and now that new drilling technology has unlocked them they have upgraded reserve life in the U.S. to like 90 years.
Long after I'll be gone.
Long after I'll be gone.
Last edited:
Similar threads
