Dear Editor
Re: Gas price hikes make no sense, Inbox, Burnaby NOW, Sept. 21.
I’m writing in response to Mr. Brassington Sr.’s letter asking about the impact of liquefied natural gas (LNG) exports on FortisB.C. natural gas bills.
Natural gas is traded in the North American marketplace as a commodity and therefore subject to market price movements. There are a number of factors that influence natural gas commodity prices.
Today, the production infrastructure to deliver LNG to overseas markets is not yet in place, which means natural gas meant for export overseas remains in the ground. As a result, LNG for export is not currently a factor in the price of natural gas customers see on their bill.
One factor that influences the price of natural gas is the fact that British Columbia is one of the most remote North American regions for natural gas and relies on exporting a large portion of its natural gas (in non-liquefied form) outside the province. Another factor is the combination of a warmer North American winter, which depressed prices, and one of the warmest summers on record, which subsequently raised prices. This means that the cost of gas our customers have seen at a steady and depressed price on their bill for a number of months will see a rise beginning Oct. 1 to a little lower than where it was at the start of last winter.
It’s important to remember our commodity rates are reviewed every three months by our independent regulator, the B.C. Utilities Commission, to ensure the rates we are charging appropriately cover the cost of natural gas we purchase on behalf of our customers. This ensures our customers pay what we pay.
The cost of natural gas is still close to the lowest levels we’ve seen in the last decade and remains the most affordable energy choice to heat your home and water compared to electricity.
For more information, we invite customers to visit fortisbc.com/rates.
Dennis Swanson, vice-president, energy supply, FortisB.C.
