1. WHAT IS ENERGYSHOP.COM ?
Energyshop.com is an independent company offering consumers and businesses objective advice on buying gas and natural gas. We are third party brokers who are able to connect gas and natural gas users with virtually any supplier. The important result is for users to get the energy buying solution that suits them. Energyshop.com is not owned in whole or in part by any energy marketer or utility.
2. Is natural gas deregulated everywhere ?
You have the choice to buy from a deregulated natural gas supplier if you buy your gas from ATCO Gas or AltaGas Utilities Inc. (If you are with ATCO, your bill will be from Direct Energy Regulated Services). If you are supplied by one of the 57 gas co-operatives, you do not have that choice unless you are a business (non farm) customer and use more than 10,000 GJ of natural gas per year. Municipally owned natural gas companies have the option of offering choice to consumers, but are not required to do so.
3. What costs make up my gas bill ?
| Gas Supply | -The natural gas that you consumes. The rate is set by the utility, or the gas marketer, whomever you buy from. Gas supply is the only part of the system that is deregulated. All others will still be regulated. |
| Delivery | -The cost of delivering the gas from the utility's border to your home or business. This pays for the construction and maintenance of the pipelines and systems. It is a regulated rate charged by the utility. |
| Distributor Charges | -These are a variety of fixed and variable charges to compensate the utility for the cost of making sure that you always have access to gas. It pays for the cost of connecting, billing and administration. |
4. What choices do I have?
Buy your gas from the utility.
The Alberta Utilities Commission (AUC) regulates investor-owned natural gas utilities, including Direct Energy Regulated Services' regulated service to ATCO Electric and ATCO Gas customers, and AltaGas Utilities. In addition, the AUC also approves regulated gas rates for the Cities of Calgary (ENMAX Power Corp.) and Edmonton (EPCOR Energy Inc.).
Municipally owned utilities are regulated by their municipal councils. Rural Natural Gas Co-operatives are regulated by a board elected by their members.
Buy from a gas marketer
Marketers offer a variety of short and long term contract options. If you choose a fixed-price for your gas over a fixed period of time, you will know your future gas costs for that time period. If gas prices rise above your fixed-price during the term of your contract, you save money. However, if gas prices fall, your gas costs may be higher than they would have been with a variable option.
If you choose to purchase from a marketer, your gas will continue to be delivered to you by the utility. The utility will also continue to provide you with emergency response services. The option of buying from a deregulated supplier is not available in some municipally owned utilities and coops.
5. Why would I buy from an gas marketer ?
Either because you want to be sure what your gas price will be month to month, or because you think gas prices are going up. Marketers provide you with choice. You often have a choice between fixed or variable rates, short or long terms and sometimes other incentives or extras such as rebates, credits on your bill or air miles. Utilities cannot offer fixed term gas contracts, except through deregulated affiliates. If you choose a variable term from a gas marketer, you will likely benefit from lower overheads and operating costs. Marketers offering a variable rate often give a guarantee of a certain percent below the utility's rate.
6. How do I choose the best deal ?
7. How do I compare the utility rate with marketer's offers ?
This is the hardest part because you would have to compare a variable price that changes frequently in response to market prices, with a fixed price for 3 or 5 years.
In deregulation, gas supply price depends on the balance of supply and demand, and will be reflected in the spot market price. This price will flucuate significantly from season to season and from year to year. Residential users still buying from the utility will pay that price through the Regulated Rate Opion (RRO).
8. How long does it take to transfer to a gas marketer ?
The process is:
This means that the marketer won't be sure that they can have you for about a month, and won't switch you for about 2 months. The contracted price won't start till then either.
9. Who will the bill come from ?
The bill will still come from your utility. The marketer you signed with informs the utility what rate to charge for the gas supply.
10. Is there a risk of not having gas supply ?
No. The utility in your area is responsible for ensuring that you have a supply of gas, as long as you pay your bill. If the gas marketer that you choose happens to go out of business, you will still have gas supplied to you. You might revert to the utility's gas supply price, or you might be required to sign with a different marketer. However, you don't have to worry about being without gas (agaom, as long as you pay your bill).
11. I've signed a contract. Can I cancel it ?
Maybe. Here are your opportunities.
a) Without Termination Fees.
b)Termination Clauses
Some marketers include a termination clause in their contract for fixed terms. Read the contract carefully. These clauses usually include an exit fee. Calculate the fee and see if it makes sense to cancel by comparing the exit fee to what you would save over the contract term by getting a new contract at a lower rate.
c) At the end of the contract period.
You will receive a notice from your marketer about 90 days prior to the expiry of your contract. It will tell you that your contract will be expiring and will likely present a new offer. It is your choice whether or not to sign this new offer.
12. How do I complain about what happened to me ?
13. Does this apply to my business ?
Most of it does. However, buying gas for a business is both more complicated and less costly than buying for a home. Some marketers also service businesses, but others don't.