Business Rates

How We Calculate Rates at PNG

Your business natural gas bill includes a fixed monthly charge, as well as delivery and commodity  charges applied to each gigajoule (GJ) of natural gas consumed.We pass the cost of the gas (commodity cost) on to you without mark up – so you pay what we pay. Any rate changes proposed by PNG are subject to review and approval by the British Columbia Utilities Commission (BCUC).

Your natural gas bill includes the following charge categories:

  • Basic monthly charge is a standard flat fee charged to all customers. This fee pays a portion of the cost of the facilities required by PNG to deliver gas to its customers. The fee is charged whether you are using gas or not.
  • Delivery charges are paid to cover the costs of maintaining the PNG natural gas system. All delivery rates are reviewed annually by PNG’s economic regulator, the BCUC.
  • Commodity charges reflect the costs of buying and transporting the gas you consume during a billing period. Commodity charges are reviewed by the BCUC every three months.

Natural gas is a commodity traded on the open market like other commodities such as oil, coffee or lumber. As with most commodities, the price is dictated by supply and demand. When demand is high, the price rises. When supply is high, the price drops.

We work to get the best value for you by purchasing gas from a variety of sources and lock in prices through the use of contracts. The commodity charges will change periodically in response to changes in the market price for gas, which is influenced by factors such as the weather or production or transportation costs.

Your Bill Explained

For more detail on the various components of your monthly statement, please visit our pages Understanding Your Bill.

Rates Per Service Area