Why Use Power Marketers? Click here to download this article in Microsoft Word format. How Marketers Save the Customer Money Gaw 1: No assets to protect The first advantage of a marketer is that it lacks generation assets. To illustrate this advantage, Maie will hypothesize a competitive bid involving two marketefs and an independent power marketer. For our purposes I have defined peak and off-peak periods as the highest cost and lowest cost half of each year. Utility two makes an offer based upon its cost of production, which looks like this: Production Costs: Utility 2 Utility 2 has peak production costs of 5. It can therefore offer the customer a rate of slightly more than 3. In a utility-only world, the buyer selects Utility 2.
How to market a natural gas company
Prior to the deregulation of the natural gas commodity market and the introduction of open access for everyone to natural gas pipelines, there was no role for natural gas marketers. Producers sold to pipelines, who sold to local distribution companies and other large volume natural gas users. Local distribution companies sold the natural gas purchased from the pipelines to retail end users, including commercial and residential customers. Price regulation at all levels of this supply chain left no place for others to buy and sell natural gas. However, with the newly accessible competitive markets introduced gradually over the past fifteen years, natural gas marketing has become an integral component of the natural gas industry. In fact, the first marketers were a direct result of interstate pipelines attempting to recoup losses associated with long term contracts entered into as a result of the oversupply problems of the early s. Natural gas marketing may be defined as the selling of natural gas. In even looser terms, marketing can be referred to as the process of coordinating, at various levels, the business of bringing natural gas from the wellhead to end-users. The role of natural gas marketers is quite complex, and does not fit exactly into any one spot in the natural gas supply chain. Marketers may be affiliates of producers, pipelines, and local utilities, or may be separate business entities unaffiliated with any other players in the natural gas industry. Marketers, in whatever form, find buyers for natural gas, ensure secure supplies of natural gas in the market, and provide a pathway for natural gas to reach the end-user. It is natural gas marketers that ensure a liquid, transparent market exists for natural gas.
Want to improve your natural gas company’s marketing strategy?
Gas marketers are independent of FortisBC, but if you buy from a gas marketer through the Customer Choice Program, FortisBC will still be delivering the natural gas to your home or business, and your natural gas bill will come from FortisBC. Account Online Log out. Account login. You can stop purchasing natural gas from FortisBC at any time. Contracts are for a period of one to five years. When you sign a Consumer Agreement with a gas marketer, you commit to purchasing natural gas at a fixed rate for one to five years. The amount you pay over the life of the contract can be more or less than what you would be charged by FortisBC. We operate under BCUC regulations that prevent us from offering fixed-term, fixed-rate contracts or different prices to customers in the same rate class. Gas marketers are free to offer different prices and terms to each customer. We charge a variable rate. You pay what we pay: we purchase natural gas from producers on the open market and recover that cost from our customers without mark-up.
How customer choice programs work
All companies need a marketing plan, even companies selling commodities like natural gas. Regardless of your market or range of services, there are dozens of other companies—both local and global—competing for your customers. A marketing plan will not only strengthen loyalty among existing customers, but also increase your reach and interest among new prospects. The Internet has opened up several new channels your company can use to reach your audience and build your brand identity. The challenge is just knowing how to use these channels properly. Keep reading to find out how to create an effective multichannel marketing strategy for your natural gas company. If you’d rather speak with a specialist, you can reach us at You have many options when deciding how to market your natural gas company. But we’ve found that these 6 strategies work the best. Since you operate in a commodity business, there has to be a compelling reason to work with your company. Gas is available from hundreds of suppliers—why should consumers and businesses buy from you? A unique brand position will give them a better understanding of your company and what it can offer. What is a brand, exactly? For many people, this means a tagline, logo, and color scheme.
The natural gas marketplace combines jow volatile commodity market with a complicated array of regulated utility services and contracts delivered through a complex supply chain. It requires several players with unique roles to deliver gas to your organization reliably and cost effectively. Understanding who those players ohw and what they do will help you meet the unique challenges of natural gas procurement. Gas Producers At the start of the supply hwo are the exploration and production companies that find and produce natural gas. Canada is the world’s third largest producer of natural gas. Gas is also produced offshore of Nova Scotia, and gas reserves are known to exist in the Mackenzie River delta, the Beaufort Marketres, and in the high Arctic, although these are not produced at present. Currently, shale gas deposits are providing new gas supply opportunities both inside the WCSB and in non-traditional gas production areas such as the St. Lawrence lowlands. These will grow in importance as yields from conventional deposits in the WCSB continue to fall. Some large natural gas producers have their own mkae arms and sell gas directly to end-users. Those that do, typically prefer to sell large volumes to the largest users gas utilities or very large industrial users. However, many producers focus on the exploration and production business, and sell their gas production to gas marketing and trading companies.
Want to improve your natural gas company’s marketing strategy?
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