Fortis doesn’t mark up price of natural gas

Re: “Doubled natural gas price unacceptable,” letter, Sept. 18. Fortis B.C. customers might have seen headlines suggesting their natural gas bill will increase by 80 per cent. This is incorrect. In reality, only one line item on their bill is increasing: the natural-gas commodity charge. The other items on their bill will remain the same.

The cost of natural gas will change from $1.141 to $2.05 per gigajoule, starting Oct. 1. For the typical residential customer on Vancouver Island, it means an increase of about $3.40 per month.

We don’t mark up the cost of natural gas — you pay what we pay. The natural-gas commodity charge on your bill covers the cost of gas we purchase for our customers. Natural gas is traded in the North American marketplace as a commodity and therefore subject to market price movements. 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.

As planned, we will implement further delivery rate decreases for Vancouver Island. By 2018, we forecast that bills will have decreased by about $20 per month, depending on changes to the cost of gas.

The cost of natural gas is still close to the lowest levels we’ve seen in the past decade. Natural gas remains an affordable energy choice to heat your home and water compared to electricity.

For more information, visit fortisbc.com/rates or call 1-888-224-2710. Roger Dall’Antonia, executive vice-president Customer service and regulatory affairs Fortis B.C.