By Bobbi-Sue Menard Capital News Contributor Apr 18 2007 http://www.kelownacapnews.com/
Starting May 1, residential gas consumers in B.C. will have a choice of gas marketers to purchase their natural gas from. The introduction of this program has been in the works for several years. Commercial users of natural gas have had choice in who they purchase their natural gas from for just over two years, and now individual buyers are about to be given that same opportunity. Kelowna and the Okanagan Valley are currently served by Terasen Gas. Terasen provides the infrastructure of pipelines and storage to bring gas to residents and consumers. Terasen makes its profit on those delivery services and no profit on the actual gas itself, an arrangement regulated by the B.C. Utility Commission. Part of that regulation by the BCUC means Terasen does not offer long-term, locked in prices. Terasen has a current strategy in place to keep consumer prices as steady as possible, including supply storage, gas futures pricing and other initiatives.
As of May 1, consumers will now have the option of purchasing longer term fixed rate contracts from gas marketers to lock in their natural gas at specific price over a period of time, giving cost certainty and peace of mind. Scott Webb, communications manager with Terasen Gas, sees the development of a marketplace for consumers to purchase natural gas as a positive thing.
“Terasen has worked to bring this to consumers. Customers told us this was what they are looking for, fixed rate options that bring peace of mind,” he said. Webb acknowledges that the cost of energy is going to go up over the long term, and says the open market is not necessarily about guaranteed savings, but about the peace of mind that comes from a locked in price. “The example I like to use is the difference between a fixed rate and a variable rate mortgage… some people like to know what is coming up and need that peace of mind.”
One of the companies stepping into the B.C. natural gas market is Direct Energy. With experience in Ontario and Quebec and a base of large and small corporate customers here in B.C. already, Direct Energy is looking to start serving residential customers as well. Clinton Roeder, vice-president of energy services in Canada for Direct Energy, sees the strength of natural gas choice for consumers as something they will welcome. “The gas is delivered to the customer in the same way, and they have signed up at a stable rate,” he says. Direct Energy will be offering a variety of products and plans for consumers based on time frames from one to five years. The company also provides conservation options and homes services for people looking to reduce their gas bill. With Direct Energy’s experience in other competitive natural gas markets, Roeder sees B.C. consumers as having some excellent positive advantages.
“Really the BCUC and Terasen have done a tremendous job in making a market that is favourable to consumers.” But even if the market is favourable to consumers, Roeder says that doesn’t mean the average customer should throw caution to the wind and lock into the first marketer that comes knocking on their door. “Definitely people should understand the terms and conditions of the contract they are going to sign and if there is something that makes them uncomfortable then they shouldn’t sign it,” says Roeder. Currently on the BCUC web site there are 11 gas marketing companies ready to start wooing customers as of May 1. BCUC Whatever choice a customer makes about their natural gas purchase they will still receive a single bill from Terasen Gas. Terasen has also launched an extensive education campaign for consumers both in print and through the media and on their web site, and Terasen is encouraging consumers to be informed beforehand about the decisions they make.
------------------------------
Don Quixote Note:
The franchise fee will not change. Terasen and BCUC have inserted a clause in your contract that will mean you still have to pay this even if you use another gas supplier and Terasen becomes just a deliverer of gas through Pipes actually owned by the City and leased back to them.
A HIDDEN TAX in your GAS BILL.
UPDATE OF OLD ARTICLE: If you live in Vernon or Coldstream take a good look at your Terasen Gas Bill. You will have a 3.09% Franchise fee charged on it. This is 3.09% of the total that you pay for gas consumed and delivered. To make it more crazy the Federal Govt charges you GST on the Franchise Fee.WHERE DOES THIS MONEY GO? If you guessed "my local municipal government" you are correct. Every time the price of gas goes up your City benefits. Remember that next time they complain about gas prices and the effect on arena heating etc. Last year the City of Vernon collected $550,000 on this fee. Total since 2000 $3,168,152
No comments:
Post a Comment