PNG offers payment solutions to customers needing extra support
June 30, 2022
The British Columbia Utilities Commission (BCUC) has approved Pacific Northern Gas’ (PNG’s) recommendation to increase natural gas commodity rates for all customers, effective July 1, 2022.
The July 1st rate increase is entirely based on the commodity price of natural gas. There is no increase to delivery rates.
Customer bills include two main components: commodity prices and delivery rates. The commodity charge reflects the gas customers have consumed during the billing period. PNG does not mark up these costs. Customers pay what we pay. The delivery charges cover the costs of maintaining the natural gas system to ensure safe and reliable service.
PNG buys natural gas on behalf of our customers at the best possible price and passes on that exact cost. We are committed to ensuring a safe, reliable supply of natural gas at the lowest reasonable price. To ensure competitive pricing, PNG purchases gas from a variety of sources.
Natural gas is a commodity traded on the open market like other commodities such as wheat, coffee or lumber. The price of natural gas is dictated by supply and demand, which is impacted by factors including the weather, the economy, international events, production costs and transportation costs.
Since 2021, energy prices have been climbing as demand outstrips supply. Across Canada, and internationally, the commodity price of natural gas is at a 10-year high. This rise in natural gas prices is a result of current global market conditions which have made the cost of natural gas more expensive. In the past several months, the invasion of Ukraine has further added to price increases, as many countries have stopped importing oil and gas from Russia.
Rates as of July 1, 2022
As of July 1, 2022, the natural gas rate increase for core market residential and small commercial customers ranges from $1.407/GJ to $1.984/GJ, or by 26% to 39%, depending on service territory and customer type.
As of July 1, 2022, commodity rates for propane customers in Granisle are reduced by $3.009/GJ, or 12%.
Residential rates can be found here. Commercial rates can be found here.
Customer Support
PNG understands that the increased cost of living may be creating financial hardship and uncertainty for some customers. During this time, PNG is supporting its customers with flexible payment arrangements and solutions that meet the individual needs of these customers.
These solutions also include enrolment in PNG’s Budget Billing Program which spreads costs out over 12 equal monthly payments to eliminate seasonal fluctuations, energy-saving tools, and assistance programs to help families and businesses conserve energy and save money.