What is Natural Gas?
Natural Gas is a fossil fuel formed when layers of buried plants, gases and animals are exposed to intense heat and pressure over thousands of years. Natural gas is a great energy source often used for heating your home, cooking your food and also for electricity generation. Since deregulation occurred back in the 80's, marketers/suppliers have been fortunate enough to create programs that can help manage the fluctuating cost of the natural gas market.
What is Deregulation?
The natural gas industry in Ontario has gone through many changes throughout the years. The biggest of these changes was when the industry was deregulated. Deregulation is the process of removing or reducing regulation in a Country, Province, or State.
For many years the gas industry was heavily regulated and there were many rules about who could buy and sell natural gas. Since 1985 many of those restrictions have been removed. For example, prior to 1985, an Ontario consumer could only buy natural gas from one source, the natural gas utility that served their area.
Today, through a process called direct purchase, industrial, commercial, and residential consumers now have more buying options. They can either buy their natural gas commodity supply from their local distribution company ("LDC"), or they can choose to buy it from a natural gas supplier like Canadian Energy Protection.
Don't worry, whomever you choose to buy it from, the LDC will always be the one to deliver the gas to you.
In Ontario the LDC's are not allowed to offer a fixed term agreement to any consumer, just a variable price based on supply and demand.
LDC prices are subject to quarterly changes every January 1st, April 1st , July 1st , and October 1st.
The Benefits of a Fixed-Rate with Canadian Energy Protection
Dealing with constantly changing natural gas rates can be stressful. The thought of waiting for a gas bill makes some people very nervous.. Here are just some of the reasons why a Fixed-Rate Protection Plan with Canadian Energy Protection will benefit a natural gas consumer in Ontario:
The ability to offer a consumer protection from fluctuations in the natural gas market
The ability to protect consumers from the potential of up to 20 rate adjustments over the course of 5 years
The ability to lock in a fixed rate for a long period of time
The ability for consumers to budget their bills a little better, knowing that the winter months ahead are covered for as much or as little consumption as they use.
The ability to give a customer the same rate for the commodity portion of their natural gas for the length of five cold winters when they need it the most.
Want to learn more? Click here to learn about the charges on your natural gas bill!