Natural gas prices
Natural gas prices trade on the market and can vary considerably
reaching highs or lows every day, as a result of the instability
between offer and demand and of the Canadian currency fluctuations.
This is one of the characteristics of a free market for which
the results can sometimes be staggering. Customers are subjected
to unexpected increases and the company leaders, concerned with
maintaining this expense within a budget, look for ways to reduce
Furthermore, because of the «North-American» market
preferences for this source of energy, the market becomes restrained,
remains under constant pressure and imposes higher costs to this
energy sector. This pressure becomes even greater following production
interruptions or a decrease, delays in the introduction of new
supply sources, difficult weather conditions and when the «North-American»
inventory levels do not meet the projected targets.
The customer’s choices
The small and medium customer has the choice of one of the following
two options for his natural gas purchases. He can be supplied
by Gaz Métro, where he agrees to pay the variable rate
for which the company projects every month according to the market
conditions or he can choose to buy his gas at a fixed rate from
a supplier participating in the Gaz Métro Fixed Price Program.
This second option means that the agreed upon price for the supply
of natural gas will be stabilized and exempt from all market fluctuations
for the entire term of the agreement.
The fixed price program
The Fixed Price Program was developed by Gaz Métro in
collaboration with independent natural gas suppliers in a bid
to offer a financial stability solution to customers that are
inconvenienced by the price volatility. Because of regulatory
reasons, Gaz Métro is not authorized to offer the fixed
price program themselves therefore, they submitted a program,
in partnership with participating suppliers for which the Régie
de l’Énergie gave their approval. The application
of the program by the participating suppliers began on October
The program distinguishes itself by its simplicity for the customers
and by its ease of application for Gaz Métro. It is dedicated
to customers using, for each separate meter, between 7,500 m³
and 1,168,000 m³ .
- Presently, Gaz Métro invoices you for five separate
services (these are shown on the reverse side of the invoice):
Gas supply, Compressor fuel, Transportation, Load balancing
- When choosing the Fixed Price Program, the first two services
will be coupled into one service named « Fixed
Price supply service». The costs of these
two services, presently invoiced at a variable price, will be
substituted by one fixed price as agreed to with your supplier;
- Gaz Métro will continue to invoice you and collect
the amounts due, as they are presently doing, based on the agreement
conditions signed between you and your supplier.
You select your choice:
- First, you choose a reliable and competent supplier (points stressed by Gaz Métro). Access Gas Services, represented in Québec by Regroupement Lafar, is an officially approved supplier by Gaz Métro;
- You evaluate with him the options which prevail on the market
in order to identify the one which corresponds best to your
needs and your desired objectives.
When you have determined your choice:
- You authorize Regroupement Lafar, by mandate or contract, to purchase your gas on the natural gas market at the agreed upon price and for the contracted period. This agreement also states the obligations of Access Gas Services to deliver on a continued basis to Gaz Métro your natural gas needs as established and specified by Gaz Métro.
- You also authorize Gaz Métro by letter of intent (designated
by Gaz Métro as Schedule «C») to replace the monthly
variable price presently billed for the gas consumed at each installation
by the contracted fixed price and you agree to pay Gaz Métro
the fixed price for the duration of your contract.
Once the transaction is concluded:
- Regroupement Lafar will forward the letter of intent – Schedule «C» to Gaz Métro;
- Upon receipt, Gaz Métro will process your request
and will confirm in writing your eligibility to the program
by indicating the name of your supplier, the fixed price which
will be invoiced, the term of the agreement, as well as, the
date of the first delivery.
During the length of your agreement:
- Regroupement Lafar will maintain a direct link between you,
your supplier and Gaz Métro;
- Should you wish, we can exercise a periodical follow-up of
the consumed volumes in order to detect any consumption irregularities;
- At all times, you can benefit from our expertise and our
counselling services in energy management and work with us to
identify and set-up ways of controlling and reducing your energy