Manage home heating costs with our natural gas price predictions

 

As most of us know, the cost of heating our homes can amount to several hundred dollars per year. The onset of colder weather and talk of a shortage in supply this winter by the National Energy Board means the cost of heating will rise. But  “When” and by “How much” have always been a matter of regulatory discretion in which new prices take effect every 3 months pursuant to a request by your natural gas supplier. For those in Ontario for instance, a supplier will make application to the Ontario Energy Board for a rate change under the Quarterly Review Adjustment Mechanism (QRAM), based on market assumptions of the commodity for the year ahead, as well as any actual or anticipated variations in the supplier’s transportation, storage, distribution and delivery costs.

Here at TGPT, we like to take the guesswork out of fuel prices so you can better manage your budget.  Based on current market trends and our analysis of the variables in the supply- demand impact on infrastructure and price we believe that  consumers of natural gas can expect an increase in their monthly natural gas bill in the order of  31%  beginning January 2013 and an additional 14 %  by April 2013. Bear in mind that the increase is per cubic metre of use, not just an increase due to heavier use for heating in the winter months.

As such a typical bill for a 2,600 sq. ft. home’s average monthly bill will look  something like this like, taking into account the doubling of use in the winter season:

 

Oct – Dec 2012 Jan- Mar 2013 Apr-June 2013
Enbridge Gas $84 per month $193 per month $144 per month
Union Gas $87 p/m $198 p/m $139 p/m