Consumer Tips

Gas Marketers

Effective May 1, 2007, consumers can now choose who they buy their natural gas from and how. Independent gas marketers have begun selling natural gas at long-term fixed prices.

Terasen Gas residential gas customers now have the option of signing on with a gas marketer or continuing to purchasing their gas at a variable rate from Terasen Gas.

Variable prices vs fixed prices

The commodity price of natural gas moves up and down over time. Terasen Gas offers a rate that varies over the short term - a variable rate. The variable rate is reviewed quarterly by the British Columbia Utilities Commission and adjusted to reflect current changes in market supply and demand. Terasen Gas earns its money from the delivery of natural gas to the consumer's home. Terasen Gas does not mark up the cost of the gas they sell to the consumer.

Residential customers can now choose to fix the price which will remain the same through the duration of a signed contract with a gas marketer. It will not fluctuate with the daily changes of energy prices. Gas marketers include a markup in the price that allows them to earn a profit.

If consumers choose to sign a gas supply contract with a gas marketer, the gas - at the agreed upon price - will begin flowing November 1st.

Consumers can change their minds

Consumers do have the right to change their minds without penalty after signing a contract with a gas marketer. After signing a contract with a gas marketer, residential customers will receive a confirmation letter from Terasen Gas.

The letter will confirm that the consumer has entered into a supply arrangement with a natural gas marketer. The letter will also provide a date by which the consumer must respond to the gas marketer, about 10 days from the time the consumer signed the contract, if the consumer plans to opt out of the agreement without penalty. This is called a cooling-off period.

Terasen Gas will continue to deliver and bill for consumers natural gas

Whether gas is purchased from Terasen Gas or through a gas marketer, Terasen Gas will continue to deliver the gas to your home. There will not be any physical changes to how gas is supplied to the home. The consumer will still receive just one monthly bill even if a contract is signed with a gas marketer. The Terasen Gas bill will separate out the cost of delivery of the gas and the commodity charges for the gas. If the consumer has signed a contract with a gas marketer, the Terasen Gas bill will identify the specific gas marketer and also provide the company's telephone number.

Questions consumers should ask before signing a contract

Consumers need to determine if signing a long-term natural gas supply contract is right for them. Terasen Gas recommends asking the following questions before signing on the dotted line.

Cover the basics:

• What is the marketer's price in Canadian dollars per gigajoule of gas?
• How long is the term of contract?
• Is the price per gigajoule of gas fixed over the entire term of a contract or can it vary?
• What is the gas marketer's track record supplying natural gas?
• What will happen to the gas supply contract if the consumer moves?

Clarify the terms of the contract:

• What are the start and end dates of the contract?
• What are the contract's renewal provisions?
• Who to call should the consumer want to cancel the contract?
• When does the cooling-off period end?
• Does the contract end at the expiration date, or will it roll over into another one or multi-year term if no further direction is received from the consumer?
• What are the penalties for early termination?
• What are the benefits of signing a fixed-term contract?

Is the contract just for gas?

• Does signing the contract commit the consumer to receive other utility services such as electricity, telecom or cable services?
• What are the financial obligations the consumer is committing to by signing the contract?
• What are the additional charges that could potentially arise from signing the contract?
• What happens to the gas supply if the gas marketer's business fails?

For more information on the natural gas marketing program, visit www.terasengas.com or telephone at 604.576.7000; toll free 1.888.224.2710 or by mail:
Terasen Gas
16705 Fraser Highway
Surrey, BC V4N 0E8


Code of Conduct for gas marketers

Although gas prices quoted by marketers are not regulated, the BC Utilities Commission is responsible for licensing these gas marketing companies and ensuring they adhere to a code of conduct. The gas marketers' code of conduct states, in part, that:

• The offer and consumer's agreements shall clearly state the price and payment terms and any other financial provisions, including any deposit requirement, allocation of cost savings and/or services, and the nature and amount of any additional charges.
• The gas supply price offered must be a fixed price for 12-month intervals expressed in Canadian dollars per gigajoule.
• This price applies only to the sale of gas and shall not include provision of other services.
• The offer and consumer's agreements shall clearly state agreement renewal provisions, including default rollover provisions.
Terasen Gas has no role in overseeing the actions of the gas marketers. For a list of gas marketers licensed to do business in BC, visit http://www.bcuc.com/ or http://www.terasengas.com

List of gas marketers (subject to change):

Premstar Energy Canada
Nexen Energy Solutions
Energy Savings (B.C.)
Avista Energy Canada
Universal Energy
CEG Energy Options
MxEnergy (Canada) Ltd.
Access Gas Services Inc.
Direct Energy Marketing
Planet Energy (BC)
Intra Energy
Superior Energy
Smart Energy (BC)
Summitt Energy BC
Active Energy
The Wholesale Energy Group