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Natural gas marketers now selling supply contracts to residential natural gas consumers
| May 1, 2007 |  Follow us on Twitter |
SURREY – Today, residential natural gas users can begin signing long-term, fixed-price contracts with the natural gas marketer of their choice as the new CUSTOMER CHOICE program kicks-off in BC.
Previously, it was only possible to purchase natural gas from Terasen Gas.
"People who choose to sign a fixed-rate contract with a natural gas marketer are buying themselves price certainty over the long-term," said Doug Stout, Terasen Gas Vice President Marketing and Business Development. "With CUSTOMER CHOICE they can take comfort in knowing the amount they pay monthly for their gas will remain unchanged over the life of their contract. It's the natural gas purchasing equivalent of signing a fixed-rate versus a variable-rate mortgage."
Unlike the fixed rate charged by gas marketers, Terasen Gas residential customers pay a variable rate as mandated by the BC Utilities Commission (BCUC). These rates are reviewed quarterly by the BCUC and adjusted up or down depending on the market price of natural gas.
Today's CUSTOMER CHOICE launch means residential natural gas users can expect to receive sales solicitations in-person, over-the-phone, or through the mail. Gas marketers are allowed to offer fixed-price contracts ranging in duration from one to five years. These energy-related sales calls will come from natural gas marketers and not Terasen Gas.
Although gas prices quoted by marketers are not regulated, the BCUC is responsible for licensing these gas marketing companies and ensuring they adhere to a code of conduct. The gas marketers' code of conduct states, in part, that:
- The offer and consumer's agreements shall clearly state the price and payment terms and any other financial provisions, including any deposit requirement, allocation of cost savings and/or services, and the nature and amount of any additional charges.
- The gas supply price offered must be a fixed price for 12-month intervals expressed in Canadian dollars per gigajoule.
- This price applies only to the sale of gas and shall not include provision of other services.
- The offer and consumer's agreements shall clearly state agreement renewal provisions, including default rollover provisions.
Terasen Gas has no role in overseeing the actions of the gas marketers. For a list of gas marketers licensed to do business in BC, visit http://www.bcuc.com/ or www.terasengas.com
Regardless of who supplies a customer's natural gas, Terasen Gas will continue to deliver the gas and provide emergency and billing services to residential natural gas users.
Customers signing natural gas contracts beginning in May will receive their gas at the marketer's rate starting in November.
The choice of natural gas suppliers will only be available to Terasen Gas residential customers in the Lower Mainland, Fraser Valley, Interior and the Kootenays (excluding Fort Nelson and Revelstoke). Due to the different regulatory agreements in place, it will not be available on Vancouver Island, the Sunshine Coast, Powell River or Whistler.
A similar program for small and mid-size commercial customers was launched in BC in 2004. Ontario opened its residential market to competition in the late 1980s; Alberta opened its market in the 1990s, while Manitoba allowed gas marketers starting in 2000.
Last August, the BCUC agreed to open a portion of the province's residential natural gas market to competition, allowing homeowners to sign long-term, fixed-price contracts for natural gas with companies other than Terasen Gas.
Visit www.terasengas.com for more information about CUSTOMER CHOICE, including a list of residential and commercial gas marketers, a program information video, and a list of questions to ask a gas marketer to help you determine if a long-term contract is right for you.
Terasen Gas delivers natural gas and piped propane to approximately 900,000 homes and businesses in 125 communities throughout BC. Terasen Gas is the common name of three companies: Terasen Gas Inc., Terasen Gas (Vancouver Island) Inc. and Terasen Gas (Whistler) Inc.
Media contact:
Joyce Wagenaar
Corporate Communications Manager
Phone: (604) 592-7682
E-mail: joyce.wagenaar@terasengas.com
Joyce Wagenaar
Corporate Communications Manager
Phone: (604) 592-7682
E-mail: joyce.wagenaar@terasengas.com
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