Thought I would post about this as this is also a factor for the Inflation numbers. Interest rates have risen substantially over the last year to combat our runaway inflation... The Banks have chosen to freeze rates lately which is good news. They are watching the inflation numbers closely to see if it is working. Knowing that Fortis BC has implemented cost cutting measures will definitely help in keeping interest rates at bay!
David Carrigg
Joe Mazza, FortisBC’s vice-president of energy supply and resource development, said the company buys natural gas at market-based prices, which are then passed on to the consumer. It reviews the price of gas with the BCUC every three months. This means that this price cut is due to market conditions that have made natural gas cheaper.“The cost of gas rate decrease will undoubtedly be welcomed and provide some relief to our customers on their gas bills, especially at a time when other living expenses are high,” Mazza said.FortisBC has not reduced the cost of delivering gas to homes, which is $5.933 a GJ — higher than the actual cost of gas.So, the 20 per cent drop in the cost of gas will not be reflected in the total monthly bill, which also includes a carbon tax, GST, storage and transport, and a daily fee. The reduction from April to June will be more like 10 per cent.Mazza said that residential customers in the Lower Mainland and Vancouver Island consume on average 90 GJ per year, which means they pay on average $534 to get the gas delivered to their home, and $464 for the cost of the gas.This price drop is also only guaranteed for a three-month period.dcarrigg@postmedia.com
Here is the article from "The Province"
Fortis BC drops price of gas by 20% from April 1 to June 30!
David CarriggFortisBC has announced a three-month price drop.
Article content
FortisBC is cutting $1 from the cost of a gigajoule of gas from April 1 to June 30, 2023.The natural gas provider reports the B.C. Utilities Commission had granted permission to decrease the price of a GJ of gas from $5.159 to $4.159.Joe Mazza, FortisBC’s vice-president of energy supply and resource development, said the company buys natural gas at market-based prices, which are then passed on to the consumer. It reviews the price of gas with the BCUC every three months. This means that this price cut is due to market conditions that have made natural gas cheaper.“The cost of gas rate decrease will undoubtedly be welcomed and provide some relief to our customers on their gas bills, especially at a time when other living expenses are high,” Mazza said.FortisBC has not reduced the cost of delivering gas to homes, which is $5.933 a GJ — higher than the actual cost of gas.So, the 20 per cent drop in the cost of gas will not be reflected in the total monthly bill, which also includes a carbon tax, GST, storage and transport, and a daily fee. The reduction from April to June will be more like 10 per cent.Mazza said that residential customers in the Lower Mainland and Vancouver Island consume on average 90 GJ per year, which means they pay on average $534 to get the gas delivered to their home, and $464 for the cost of the gas.This price drop is also only guaranteed for a three-month period.dcarrigg@postmedia.com