Volatility can wreak havoc on a business’ bottom line. Whether it’s in market indices, oil and gas prices, or foreign currencies, volatility is a reality in today’s market for Alberta businesses.

One thing Alberta businesses do have in common is their need for natural gas – a commodity whose prices have been all over the map and that analysts predict will continue to trend upwards, creating a true budgeting nightmare.

As the province’s businesses put the final touches on the 2005 budgets, it is important to note that options do exist.

A new player in the province’s retail energy market is bringing the strength of its learnings in the U.K. and in other parts of North America to help put the control over energy costs back into the hands of its commercial clients.



“Not all commercial clients are alike, and the same solution won’t work for all businesses. But there are products and services available that lay out a much more accurate picture of what their natural gas costs will be, and how to reduce those further,” said Peter Dixon, vice-president of energy retailer Direct Energy Business Services, Western Region.

In Alberta ,Direct Energy Business Services is a Partnership Business managed by Direct Energy Marketing Limited. Direct Energy Business Services has been in Alberta since the spring, but brings to the market its experience from Ontario, Texas and the U.K. It leverages the resources and learnings of parent company Centrica plc to provide new ways of looking at natural gas.

Innovation, choice and world-class customer service are the three promises that were made to Albertans when the company first announced its intention to enter the market back in 2002. With that in mind, Direct Energy Business Services introduced its secure price natural gas contract offer to Alberta businesses this spring. As its sales team got out to talk with existing and potential clients, their feedback was used to broaden the offering.

“Our initial product was very risk-free for customers,” said Dixon, whose organization also provides energy-related services such as building heating and ventilation maintenance, repair and automation to help customers reduce their energy costs. “But it became very apparent that some customers – especially process- or industrial-load businesses – were much more willing to take on a certain element of risk in order to reduce the overall natural gas prices. We needed to do more.”

Since September 1, Direct Energy Business Services has introduced two new products that fill that need.

Under its fixed-quantity price plan, Direct Energy Business Services works with customers to pre-determine their monthly natural gas consumption, and a fixed natural gas price is set for the duration of the contract – helping to take the guess-work out of natural gas pricing.

According to Dixon, the fixed-quantity price plan can be pre-set for a business’ daily or monthly consumption, giving customers whose consumption patterns vary widely much more flexibility and more accurate budgeting over the term of their agreement, while eliminating the risk of fluctuating prices.

The second new product, dubbed Energy Smart, has customers begin their contract on a floating or market natural gas rate. During the initial contract period, Direct Energy Business Services works with its customers to determine the correct volume and rate at which to lock-in for the remainder of the contract.

Dixon said both new products are tailored more for industrial-load customers who are in a position to assume some risk relating to volume predictions in order to gain better pricing.

In addition, the company has also introduced a promotion for customers who sign on to a natural gas product before the end of the year.

Alberta businesses, who consume over 2500GJ per year, that sign a five-year, fixed-quantity, energy smart or secure price plan contract with Direct Energy Business Services before the end of the year can qualify to receive an additional $1 rebate off their natural gas price in the months that the provincial government rebate is in effect. Under the government rebate program, if the price of gas is more than $5.50/GJ for two out of the three regulated utilities, a rebate is issued for that month. The promotional rebate program applies to the winter period of November 1, 2004 to March 31, 2005 only.

In compliance with legislation, you should know that you are not required to purchase natural gas, electricity or other goods and services under contract from Direct Energy Business Services. Customers previously supplied with energy by ATCO Gas and/or ATCO Electric will automatically receive natural gas and/or electricity at regulated rates from Direct Energy Regulated Services. Direct Energy Business Services’ Natural Gas offers are not available to customers of AltaGas, member owned gas co-ops or some municipally owned gas utilities. For a current list of licensed retailers or more information visit www.customerchoice.gov.ab.ca or call toll-free 310-4455.

Direct Energy Business Services is a Direct Energy Partnership business managed by Direct Energy Marketing Limited.

TMDirect Energy and the Energy Bolt Design are trademarks of Direct Energy Marketing Limited.

* Direct Energy Business Services

* Website: www.directenergy.com/business

* Phone: 1.888.827.9811