Price of natural gas

Energy is a big part of your operating costs, and it is important to keep it under control. Reducing your energy bill means more money for your business. The price of natural gas is 30% cheaper than electricity and 52% cheaper than oil. These savings could mean a chance to reinvest in your business to increase your productivity.1

Many people are not aware that Gaz Métro does not make any profit on the price of the natural gas it supplies. The only service on which Gaz Métro is authorized to make a profit is distribution. The price of the natural gas supplied and the compressor fuel used to run the compressors that push the natural gas through the transmission network are the only two components of your bill that are subject to monthly fluctuations. They account for about 35 to 40% of the gas bill of a business customer that consumes between 15,000 m3 and 50,000 m3, the consumption of an average-sized business.

Gaz Métro has taken concrete steps to help manage monthly variations in the price of the natural gas it supplies. One of the tools Gaz Métro is the use of derivatives which are a way to reduce the effect of unexpected variations on the price of natural gas.

To manage all aspects of gas supply more effectively, Gaz Métro has also adopted a portfolio approach to gas purchases, actually buying from many different suppliers in order to diversify its sources geographically. Just one of the ways Gaz Métro makes sure its customers enjoy the best price possible.

Introduction to tariffs
Understand my bill

Desc. Description Unit Price effective
Nov 1, 2014 Dec 1, 2014
Natural gas supply
Price $/GJ 3.68 3.77
¢/m3 13.944 14.285
Transfer price(1)
Entry ¢/m3 0.000 0.000
W/D Withdrawal ¢/m3 0.181 0.185
Compressor fuel
South
zone
North
zone
South
zone
North
zone
Ratio % 4.12 3.12 5.27 4.01
Price(2) ¢/m3 0.574 0.435 0.753 0.573
(1) The transfer price only applies when the customer fails to comply with the notice of entry or opt out to the natural gas supply service
(2) The price is obtained by multiplying the natural gas supply price by the applicable ratio

Reduce your energy costs

Natural gas has been less expensive than electricity for 15 years, and less than fuel-oil for 9 years. Lower your energy bill by installing natural gas equipment. Not only is natural gas more powerful than electricity or fuel-oil, it also costs less.

Chart comparing annual energy costs equivalent to 5,143 m3 (100% heating) according to the prices in effect from October 2013 to September 2014.

A stable long-term price

The price of natural gas is 30% cheaper than electricity and 52% cheaper than fuel-oil. What's more, the financial markets agree* that its price will stay low for the next 10 years.1

Natural gas prices evolution (source: financial market)

The natural gas bill is composed of five services: natural gas supply, compressor fuel, transportation, load balancing and distribution. The only two services that are subject to monthly price variations, the natural gas supply and the compressor fuel, can be stabilized with the fixed price service.If you are looking for budget stability then the fixed price service is for you.

About the fixed price service

The fixed price supply service is offered by natural gas suppliers. You can choose between the variable price offered by Gaz Métro or the fixed price. The fixed price service can meet your need for financial stability since it targets the two most volatile services of your gas bill. You'll know in advance what price you'll pay for the natural gas supply and the compressor fuel. It can be compared to a fixed-rate mortgage. The main objective of the fixed price service is budget stability and not making savings. This service is offered to customers, like you, who consume a minimum of 7,500 m³ and a maximum of 1,168,000 m³ per year.

How does it work?

  • You agree on a price and terms with the participating supplier of your choice and sign an undertaking document. Gaz Métro receives a copy of this document and buys the natural gas on your behalf from the participating supplier for your agreed-upon price and term.
  • Gaz Métro then bills you for the natural gas at the price you agreed upon for the term of the agreement, without any extra charges. It takes 60 days to implement this service after Gaz Métro receives the undertaking document.
  • If the participating supplier cannot meet its commitments, the client will revert automatically to Gaz Métro's variable price because the fixed price service is not guaranteed by Gaz Métro.
  • To learn more, see the Frequently asked questions on fixed price.

Who are participating suppliers?

  • The participating suppliers are independent companies that specialize in buying natural gas and reselling it to individuals and companies. The participating suppliers must abide by the minimum commercial practices established by Gaz Métro. These practices ensure that the client is well informed and well served.
  • You may opt for the participating supplier of your choice. We encourage you to be well informed before committing yourself.

1 Percentages are obtained by calculating the difference between an annual bill for natural gas compared to one for the other energy source. Statistics for a consumption volume of 41,500 m3 per year, 85% heating and 15% process or hot water.