Verified answer

The difference is not in gas price or pressure, it's in how much you can expect to pay monthly. On the fixed rate your gas bill is estimated based off of historic gas usage at that residence. You may use more or less, depending on energy efficiency improvements or the lack thereof.

At a "Fixed" rate you know how much your gas bill will be every month. You may use MORE or LESS than what you are paying for, but your bills remain relatively stable. At the end of the year, should you have paid more than necessary the gas company should give you a rebate. I have just such a plan.

At a "Variable" rate, you pay exactly how much gas you use. The price of the gas remains the same in either fixed or variable terms, so you're not saving any money, but during cold winters your gas bill will be higher and in summer lower.

If your finances can withstand that then you never have to worry about getting a rebate or a higher bill. But 'Therms' refers to how much heating is necessary to maintain a certain temperature inside the house.

Suppose you keep the house at 70 degrees and the winter has an average temperature of 40 degrees. Your heating expenses will be X amount. But suppose the average temperature is 10 degrees, your heating expenses (in theory) will be 2X ( or double ). So the gas company can never guarantee how much gas you will use, that's why in a mild winter you will likely get a rebate but in a harsh winter either your averages may go up or you may get a balloon bill at the end of the year.

The choice is yours. Personally, I like the "Level Pay Plan" my gas company offers.

Hope this helps.

'av'a g'day mate.

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