Pricing

Our rate structure corresponds to a range of consumption profiles. The Régie de l’énergie approves, on an annual basis, the distribution revenues of Gaz Métro and our rate breakdown. The Régie also approves the various rate structures and changes where applicable.

To understand the price of natural gas, you need to understand its five components: natural gas supply, transportation, compression, load balancing, distribution.

Supply

The supply is the natural gas itself, the fuel. The price fluctuates according to market supply and demand. The supply price is modified monthly. We bill you the same as what we pay the producers. Learn more on gas supply (PDF)

Compression

The compressor fuel is what runs the compressors that transport natural gas from the wells to the territory we serve. The compressor fuel price is modified monthly. We bill the compressor fuel at the same price as what we pay the producers. Learn more on compression (PDF)

Transportation

This is the service that sends the natural gas through pipelines from the production sites to Quebec , the territory served by Gaz Métro. The transportation prices are modified when Gaz Métro transportation suppliers modify their own prices. We bill this service at the same price as what we pay the transportation companies. Learn more on transportation (PDF)

Load balancing

Load balancing means managing the variations between summer and winter consumption and natural gas storage management. This component's price is modified annually, at the beginning of October.Gaz Métro bills this component at the same price that the load balancing tools are bought from suppliers. Learn more on load-balancing (PDF)

Distribution

This is the natural gas delivery service through our distribution network. You are assigned a rate based on your comsuption. The distribution price is modified annually.Gaz Métro's earnings come exclusively from this component of your bill. Learn more on distribution (PDF)

Two components, supply and compressor fuel, are not regulated and follow market supply and demand. However, any change to the other three components must be approved either by the Régie de l’énergie (distribution and load balancing), or by the National Energy Board (transportation).

The Régie de l’énergie has approved Gaz Métro’s Conditions of Service and Tariff. These terms apply to all of our customers and set out the conditions related to: natural gas services provided, billing and payment options, various applicable tariffs and rights and responsibilities.

Conditions of Service and Tariff (PDF)

The distribution rate is the natural gas delivery service through our distribution network. You are assigned a rate based on your consumption. The general distribution rate (D1) is described below.

Applicability of the rate

  • Offered to all
  • No restrictions on level of consumption (no limit, no obligation to consume)
  • Applicable to customers who do not have a sufficient volume to be eligible for other tariffs
  • Advantageous for customers with an irregular or unpredictable consumption profile

Cost

The cost of the general distribution service is the sum of the three factors described below.

Basic fees

  • Constitute the fixed portion of the bill
  • Vary according to annual volume withdrawn
  • Billed per metering equipment according to the number of days in the billing period

Unit price by volume withdrawn

  • Variable portion of the bill
  • Billed according to volume withdrawn during the billing period
  • The higher the volume, the lower the unit price.

Volumes in excess of 100% of the subscribed volume

When the volume withdrawn during the billing period exceeds 100% of the subscribed volume, the excess volume is billed in accordance with the general distribution service D1.

Unauthorized withdrawals

A stiff penalty applies when the volume withdrawn during the billing period exceeds 150% of the subscribed volume.

Contribution to Green Fund

  • Variable portion of the bill
  • Billed according to volume withdrawn during the billing period

Applicability of the rate

  • A commitment to a subscribed volume of at least 333 m3 per day
  • Applicable to customers whose annual consumption volume is at least 75,000m3 and whose utilization coefficient (annual volume divided by daily peak volume x 365 days) is at least 60%
  • Advantageous for customers with a relatively stable monthly consumption profile

Cost of stable distribution service D3

The cost of the stable distribution service D3 is the sum of the elements described below.

Minimum daily obligation (MDO)

  • Constitutes the fixed portion of the bill
  • Established based on subscribed volume (SV)
  • Billed based on the number of days in the billing period
  • The cost goes down when the subscribed volume increases and the average unit price becomes advantageous when consumption is stable.

Unit price by volume withdrawn

  • Variable portion of the bill
  • Billed according to volume withdrawn during the billing period
  • A reduction in the MDO, as well as the unit price on the volume withdrawn, is accorded when the customer signs a contract with a term of at least 12 months.

Volumes in excess of 100% of the subscribed volume

When the volume withdrawn during the billing period exceeds 100% of the subscribed volume, the excess volume is billed in accordance with the general distribution service D1.

Unauthorized withdrawals

A stiff penalty applies when the volume withdrawn during the billing period exceeds 150% of the subscribed volume.

Contribution to Green Fund

  • Variable component of the bill
  • Billed according to volume withdrawn during the billing period

Revisions to subscribed volume

Depending on certain conditions, annual revisions may be made to the subscribed volume.

Combination rate

Combining Stable Rate D3 with an interruptible tariff may be possible, depending on the annual volume withdrawn.

To help you better understand the different components of pricing, see the two PDF documents below.

Example of calculations General Distribution Rate D1 (PDF)
Example of calculations Stable service Rate D3 (PDF)

Gaz Métro offers gas supply, compressor fuel, load balancing and distribution services. Natural gas producers, transporters and brokers may also offer these services. The distribution service is, however, exclusively provided by the Gaz Métro network.

Who can prevail over unbundled Services?

All customers may, if they wish, purchase their natural gas supply and compressor fuel services from the supplier of their choice. Also, according to predefined eligibility criteria, certain customers will be able to opt out of Gaz Métro's transportation and load-balancing services.

See all suppliers

Can several customers join together in associations in order to obtain the various services?

Under certain predetermined conditions, customers may join together for all of the services. The exception is the distribution service, for which no customer associations are permitted.

You have some questions about Gaz Métro's credit policy and guidelines for commercial customers? This is the answers to the key questions you may have regarding Gaz Métro's credit requirements and accepted types of guarantees.

Clientele addressed

If you find yourself in one of the following situations:

  • Gaz Métro's credit policy concerns you: you sign a contract to receive natural gas service
  • you move to an address already supplied by natural gas

Gaz Métro's criteria for decisions regarding credit evaluation

The first criterion Gaz Métro uses in its credit evaluation process is the number of years you have been in business under the same legal entity. Here is a table summarizing Gaz Métro's evaluation process.

Number of years in business under the same legal entity: Three years or less

  • Gaz Métro's evaluation : Gaz Métro has based its risk evaluation on a study by the ministère de l'Industrie et du Commerce*
  • Decision: Gaz Métro will require a deposit

More than three years under the same legal entity

  • Gaz Métro's evaluation: Gaz Métro requires authorization to conduct a banking verification for credit evaluation purposes. In certain cases, financial statements may also be required. Gaz Métro evaluates credit according to generally accepted practices concerning credit: the quality of banking references and financial statements, the payment history with Gaz Métro at your other addresses supplied by natural gas (if applicable), the activity sector and degree of risk.
  • Decision:  Gaz Métro may or may not require a deposit following this evaluation.

*Taux de survie des entreprises au Québec et taux de passage, ministère de l'Industrie et du Commerce, Direction de l'analyse économique, March 2001

Accepted types of deposits

The deposit required by Gaz Métro may take the following forms: a cash payment, a letter of guarantee emitted by a financial institution and irrevocable for a three-year period or a surety subject to Gaz Métro's approval.

Amount of deposit

The amount of the deposit required id determined based on an estimate, or the history of the volumes withdrawn at the service address. It will not exceed tht total for the two highest consecutive months of consumption over a twelve-month period..

Payment of deposit

The deposit must be paid before natural gas service commences. In the event that the natural gas service is already available to the customer at the service address, the payment is required at the due date indicated on the bill in order to ensure continuity of service.

What happens to a financial deposit?

Gaz Métro holds your deposit in a trust account. Simple annual interest on the amount of your deposit will be credited to your invoice before January 30 of each year. The interest rate is adjusted annually on January 1st.

Do you have questions?

We invite you to get in touch with our Account management department, who will answer any questions you may have concerning Gaz Métro's credit policy and guidelines for commercial customers.

Account Receivables Department
1717, du Havre  Montréal (Québec) H2K 2X3
Phone:  514 719-8222, outside Montréal 1 888 598-3117
Fax:  514 719-8137
credit@gazmetro.com

For more information: Gaz Métro's Credit Policy and Guidelines (PDF)

The information presented here conforms to the Conditions of Service and Tariff.