To understand the price of natural gas, you need to understand its six components: natural gas supply, transportation, load balancing, distribution, inventory-related adjustments and cap-and-trade emission allowances system.
The supply is the natural gas itself, the fuel. The price fluctuates according to market supply and demand. The supply price is modified monthly. We bill you the same as what we pay the producers.
This is the service that sends the natural gas through pipelines from the production sites to Quebec , the territory served by Gaz Métro. The transportation prices are modified when Gaz Métro transportation suppliers modify their own prices. We bill this service at the same price as what we pay the transportation companies.
Load balancing means managing the variations between summer and winter consumption and natural gas storage management. This component's price is modified annually, at the beginning of October.Gaz Métro bills this component at the same price that the load balancing tools are bought from suppliers.
This is the natural gas delivery service through our distribution network. You are assigned a rate based on your comsuption. The distribution price is modified annually, at the beginning of October.Gaz Métro's earnings come exclusively from this component of your bill.
Inventory-related adjustmentsGaz Métro must store natural gas during the summer to serve customers during the winter see the Fact Sheet on “Load-balancing service. In order to store natural gas, costs are incurred for the supply and transportation to the storage point. The cost of these services may vary depending on the time when the natural gas is stored and the time it is consumed by customers.
Cap-and-trade emission allowances systemThe emission allowance cost for the natural gas combustion, which varies each month. Cap-and-Trade System is an economic tool of the Québec government aimed at reducing greenhouse gas emissions. Fuels consumed in Québec are covered by the Cap-and-Trade System through energy distributors like Gaz Métro. The sums collected will be invested by the government in, among other things, measures aimed at combating climate change. The price vary each month.