The energy market

The energy market is evolving in an increasingly complex environment where the market volatility contributes greatly to unexpected price increases. This context makes budgeting your annual costs more difficult. Should you be looking for price stability, the Gaz Métro Fixed Price Program is the answer to your needs.


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 this risk.

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 1, 2003.

Program content

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 and Distribution;
  • 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.

The procedure

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 costs.