Albertans who do not have a contract for natural gas will see their rate go down in January.

Customers living in and north of Red Deer will pay $2.81 per gigajoule for natural gas this month, compared to $3.58 in December, said Direct Energy Regulated Services.

For those living south of Red Deer, the rate drops to $2.91 per gigajoule, from $3.54 in December.

Direct Energy says the average residential gas bill for January based on 20 gigajoules of consumption would be approximately $135 in the north, and $113 in the south.

The rates have been verified by the Alberta Utilities Commission.