FortisBC customers to pay $82 more for gas on average per year
Posted September 12, 2016 12:00 pm.
Last Updated September 12, 2016 5:15 pm.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – FortisBC says it has been given the green light from the BC Utilities Commission to up its natural gas rates by 80 per cent.
As of Oct. 1, customers will pay $2.05 per gigajoule, up from $1.14. Because the price of gas only makes up a fraction of an overall bill, the average homeowner can expect an increase of $82 per year, based on the average use of 90 gigajoules per year.
“That is the largest increase we’ve had in a while and actually it’s one of the few increases we’ve had in a while,” FortisBC spokesperson Michael Allison says.
The company, which buys natural gas at market rates and transports it to BC customers, blames the spike of global prices since spring and increased demand due to hot summer weather across North America leading to more air conditioner usage.
“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 FortisBC. “This combined with a slowdown in natural gas production has led to an increase in prices during the past few months.”
Customer Choice program participants won’t be affected by the rate increase until their contract is up and they have to negotiate a new one.
Despite the uptick, the company claims natural gas prices are near their lowest level in a decade and it suggests that as winter approaches, people use their energy more efficiently.
Natural gas prices hit their lowest this year in early March and nearly doubled by mid-June.
