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Residential natural gas prices, advice needed

newtohobby

New member
Jul 22, 2006
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I guess my parents had a contract with direct energy for natural gas. They got a letter saying that they will renew for another year at the prices of 31.9 cents / m3. The transportation cost is 9.058 cents/m3 and storage is 1.99 cents/m3. Is this a good price? Any advice? thx
 

gcostanza

Well-known member
Jul 24, 2010
7,818
528
113
I guess my parents had a contract with direct energy for natural gas. They got a letter saying that they will renew for another year at the prices of 31.9 cents / m3. The transportation cost is 9.058 cents/m3 and storage is 1.99 cents/m3. Is this a good price? Any advice? thx
DO NOT RENEW.

Check out Union Gas's website, or give them a call.

https://www.uniongas.com/residential/rates

Call 1 888 774-3111 for more information

Direct Energy? UGH!
 

gcostanza

Well-known member
Jul 24, 2010
7,818
528
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thanks, I don't know much about this as I assume my parents signed it years ago. Can you get the natural gas directly from union gas?
My bill reads Union Gas.

Give them a call, from your parents place if possible, so you can hand the phone to Mom or Dad,
if/when they need to talk to them to set stuff up.

Get yourself to Customer Service, they're (believe it or not) not there to scam you, but to get customers their product at a fair price.

WhatEVER they do, do not renew with Direct Energy.
 

twir

Member
Sep 19, 2004
150
16
18
I guess my parents had a contract with direct energy for natural gas. They got a letter saying that they will renew for another year at the prices of 31.9 cents / m3. The transportation cost is 9.058 cents/m3 and storage is 1.99 cents/m3. Is this a good price? Any advice? thx
Do not renew.

Buy directly from the gas provider like enbridge or union gas. gas is cheap now. check prices here below.
best way to protect yourself is not to get into a contract.

https://www.enbridgegas.com/homes/a...l-gas-rates/purchasing-gas-from-enbridge.aspx
 

jaycam

Active member
Jan 19, 2004
527
45
28
DO NOT EVER EVER EVER EVER EVER EVER SIGN A GAS CONTRACT. Direct Energy and Reliance are both dirt back bottom feeders.

Your money is better spent on the mother from Honey Boo Boo.
 

Butler1000

Well-known member
Oct 31, 2011
29,362
3,837
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I've never had an issue dealing directly with Enbridge. I purchased my own hvac as well. And water heater. Worth it.

Last year my final bill came to $0 because of cost adjustments. No gouging anywhere.
 

GPIDEAL

Prolific User
Jun 27, 2010
23,360
11
38
I guess my parents had a contract with direct energy for natural gas. They got a letter saying that they will renew for another year at the prices of 31.9 cents / m3. The transportation cost is 9.058 cents/m3 and storage is 1.99 cents/m3. Is this a good price? Any advice? thx
Do not fucking renew.

In fact, gas marketers will say prices will go up and therefore, locking in is prudent. (They never will tell you that prices might drop because of increased supply from fracking).

I've battled it out with Just Energy for a commercial property (they wanted a $10K termination fee since I sold the building - but I argued with the collection agent until I tired them out - Just Energy did a blend and extend but really did a bait and switch).

I fucked up earlier and locked my mom with Canadian Rite-Rate, however, they told me that it won't renew automatically, and that I have it in writing.

Yet, I'm sure come renewal time, they will try to renew in a sneaky way.

Last time I checked, the spot rate of gas from a utility company like Enbridge is CHEAPER.
 

GPIDEAL

Prolific User
Jun 27, 2010
23,360
11
38
Do not renew.

Buy directly from the gas provider like enbridge or union gas. gas is cheap now. check prices here below.
best way to protect yourself is not to get into a contract.

https://www.enbridgegas.com/homes/a...l-gas-rates/purchasing-gas-from-enbridge.aspx
@ OP: As you can see from twir's link, the cost of gas is 14 cents per cubic meter. Those fixed-price contracts are at least double. Cheapest might be in the 20 - 30 cent range. Still too high a premium.

(Since fracking reduced prices by increasing supply, independent suppliers changed their marketing - example, Ontario Energy Savings became Just Energy because they couldn't guarantee savings due to the reduction in spot prices below their long term contracts. They had the gall to tell me "we are not here to guarantee savings, but to bring you price stability". Why the fuck did I sign a contract with you in the first place?)

p.s. one of their marketing ploys is to send nice-looking twinky ladies - guess it worked with me sometimes.
 

Submariner

Well-known member
Sep 5, 2012
944
825
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Can you get the natural gas directly from union gas?
Depends on where you live.

Over 90% of Ontario residences are served by one of two distribution utilities (and by distribution I mean in your local town). Enbridge Gas Distribution serves the Greater Toronto Area, Barrie, Ottawa and surrounding area, and the Niagara Region. Union Gas serves the rest of the province, except Kingston and Kitchener, which have their own Public Utility Companies. Check the following link to see a map and a list of towns in the Enbridge delivery area. http://www.egd.enbridge.com/homes/start-stop-move/start-gas-service/our-service-area.aspx

To understand your gas bill, go the the Ontario Energy Board website at this link. http://www.ontarioenergyboard.ca/OEB/Consumers/Natural+Gas/Your+Natural+Gas+Bill

Here is a summary:
1. A customer charge to pay for administration of your account, meter and billing costs, emergency services, local equipment maintenance, etc. This amount is fixed by the OEB.
2. A transportation charge to cover moving gas from western Canada to Ontario, distributing it through the local system, and storage costs. This amount will vary with quantity of gas used.
3. A gas supply charge to pay for the molecules of gas used. You can buy the gas molecules from your local distributor (i.e. Enbridge or Union) or from a marketer like Direct Energy or RiteRate. This is not unlike long distance service where you can choose to buy your minutes from a “reseller” but the service is provided through Bell’s wire network.

Note that if you go with a marketer, you are still having your gas delivered by Enbridge/Union and will still pay the customer charge and the transportation charge.

Also note that if you buy from Enbridge or Union, the cost of the gas is set by the OEB quarterly and by law Enbridge and Union are not allowed to make a profit on the sale of gas molecules. This price willl go up and down with various market forces. If you go with a marketer, you can sign a fixed rate contract over several years. As a result, you may either do better or worse than staying with Enbridge or Union.

So to answer your question "Can you buy directly from Union"?, the answer is yes if you live in the Union Gas service area. I may be wrong, but I think Union Gas does not (or is not allowed to) market residential gas sales in the Enbridge service area, and likewise Enbridge in Union's area.

Hope this helps.
 
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