Fortis BC has announced that natural gas prices will decrease by a small margin starting January 1st 2020.
The company has received approval from the British Columbia Utilities Commission (BCUC) to reduce rates in the new year.
On Vancouver Island, Fortis BC predicts that the average resident’s utility bill will be reduced by 2% or $18 for the year, based on the average annual usage of 90 gigajoules (GJ).
According to a statement from the energy company, storage and transportation costs for natural gas have decreased overall while the cost of natural gas remains the same.
“Natural gas continues to be an affordable option to heat a customer’s home and water when compared to other energy choices in British Columbia,” said Dennis Swanson, vice-president of energy supply and resource development with FortisBC.
“And since we don’t mark up the cost of natural gas, our customers pay what we pay.”
This time last year, natural gas consumers in BC experienced higher costs due to the Enbridge pipeline rupture in Prince George, which led to decreased supply and higher storage and transportation rates.
However as supply volumes continued to stabilize throughout 2019, Fortis BC gas bills will reflect the decreased costs of storage and transportation in the new year.
These changes are subject to final review, and a permanent decision regarding rates will be made in 2020.