Natural Gas Rate Increase for BC

Posted on: October 5th, 2016 by Ashton Service Group

natural gas rate increase

In case you missed the announcement, Fortis BC has been approved by the BC Utilities Commission to increase their natural gas rate by 80%.

Starting October 1st, residential customers will pay $2.05 per gigajoule, up from $1.14. Because the price of gas only makes up only a part of the overall bill that you receive, the average homeowner can expect to see an increase of $82 per year, based on the average use of 90 gigajoules per year.

Fortis BC blames the increase of global prices and increased demand due to the hot summer weather across North America leading to more people using their air conditioner.

“The hotter-than-normal summer, for most of Canada and the US, has resulted in higher-than-expected continental demand for electricity, which is often generated by natural gas,” says Dennis Swanson, vice-president of energy supply at Fortis BC. “This combined with a slowdown in natural gas production has led to an increase in prices during the past few months.”

Rates are reset every three months based on market conditions and Fortis BC does not mark up the price of gas for customers. The company makes many on the delivery charge which is added to every bill.

Lower Mainland Service Area Rates
(Effective October 1, 2016)
Basic charge per day $0.389
Delivery charge per GJ $4.018
Storage and transport charge per GJ $0.921
Cost of gas per GJ $2.05

 

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