Natural gas prices rising for Fortis B.C. customers
Average B.C. customer will pay extra $82 per year
The average B.C. household is going to be paying an extra $82 per year to heat their home with natural gas this winter, Fortis B.C. has revealed.
The company blames the price hike on rising demand across North America and a declining production.
"Natural gas prices have risen since spring 2016. 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," said Dennis Swanson, vice president of energy supply, in a statement released by Fortis B.C..
"This, combined with a slowdown in natural gas production, has led to an increase in prices during the past few months. Despite this, natural gas prices are still near their lowest levels in a decade."
The company points out the rates are regulated by the B.C. Utilities Commission and are reset every three months based on market conditions.
Fortis B.C. does not mark up the price of gas for customers and changes in the market price of gas are either refunded or recovered from customers.
The company makes money on the delivery charge, which is added to every bill.
Anyone already signed up for fixed prices with a Customer Choice program will not be affected by the price increase, the statement noted.
And propane rates for Revelstoke customers remained unchanged due to healthy propane storage levels and relatively stable oil prices over the past few months, the statement said.