How to purchase your natural gas supply:
You and other natural gas customers have two options for purchasing your natural gas supply. You can have Enbridge Gas New Brunswick, the regulated utility, supply your gas or you can sign a contract for gas supply with an independent Gas Marketer
licensed by the New Brunswick Energy and Utilities Board.
The price of natural gas in New Brunswick is based on market conditions in North America. The market price of natural gas, like any other commodity, can change dramatically during the year and from year to year. However, your gas supplier can take steps to stabilize the price you pay to minimize price spikes throughout the year. The type of contract you enter into with your gas supplier will affect the degree of price changes you are likely to experience.
Consumers have several types of price options to choose from when purchasing natural gas. The most common types of products offered:
- Fixed Price natural gas agreements provide customers with the ability to lock in their future natural gas price for a fixed time period. The benefit of the fixed price is that you are assured that your price will not rise if natural gas prices rise during the contract term. However, a customer who selects a fixed price will remain at the fixed price even if market prices decline/increase. Fixed price protection can provide peace of mind and budget control.
- Variable Prices are set each month based on the market price of that month. Like fuel oil and propane, the price will change each month based on market supply and demand conditions. Higher gas prices usually occur during the winter months with lower prices in the spring and summer.
- Balanced or Managed Price natural gas agreements provide a choice for consumers who remain uncertain about locking into a fixed price or purchasing gas on a variable price basis. With balanced pricing, your gas supplier may purchase part of your gas requirements at a fixed price and part on a variable monthly basis. The Marketer may balance your load requirements with variable price gas to reduce the chance of locking in at a high price prior to a reduction in the market price of gas. Balanced pricing does not provide certainty on the price of future purchases, but it should work to strike a balance between the variable and fixed price purchase plans. A well managed balanced product should minimize price increases during times of high demand and allow you to benefit from price decreases if gas prices are going down.