Frequently Asked Questions
- How does Direct Energy Regulated Services determine the cost for gas?
- Why do Natural Gas rates fluctuate monthly?
- What are the Production Rider and the Storage Rider? (ATCO Gas South Only)
- What are my energy options?
- How much energy does the typical customer use?
- What is the Carbon Levy?
How does Direct Energy Regulated Services determine the cost for gas?
The regulated natural gas rate is the rate you pay for natural gas if you have not chosen to enter into a contract with an energy retailer.
The natural gas rate is based on two things: a forecast of market prices for the upcoming month and the amount that has been over- or undercollected from previous months. Near the end of each month, a natural gas rate for the upcoming month is filed with the AUC for review.
Why do Natural Gas rates fluctuate monthly?
The price of natural gas in Alberta is impacted by many different factors, including supply and demand, the economy, world events and weather. Unusually hot or cold temperatures or changes in weather patterns can affect energy rates – as can extreme weather such as hurricanes.
What are the Production Rider and the Storage Rider? (ATCO Gas South Only)
The Production Rider relates to the difference between the market value of the gas produced from the production facilities owned by ATCO Gas in the south and the royalty cost of gas.
The Storage Rider relates to the use of the storage facility owned by ATCO Gas in the south by third parties.
ATCO Gas does not own production or storage facilities in the North, so there is no Production Rider or Storage Rider for their North customers.
What are my energy options?
The Alberta Government has made a commitment to fostering a competitive energy market in the province. They're doing this by giving Albertans the opportunity to choose their retailer – either by signing up for a competitive contract or staying on the regulated rate.
There are a number of energy retailers in Alberta offering a variety of natural gas and electricity price protection plans, which protect customers against rising prices. A list of energy retailers can be found at www.ucahelps.alberta.ca or by calling
How much energy does the typical customer use?
A typical residential customer uses approximately 119 gigajoules of Natural Gas in one year.
What is the Carbon Levy?
The Carbon Levy is not a levy set by Direct Energy Regulated Services.
As part of the Government of Alberta's Climate Leadership Plan to reduce greenhouse gas emissions, they are introducing a levy on the price of all fuels that emit greenhouse gases when combusted. This includes natural gas. The levy will be applied beginning January 1, 2017.
|Natural gas consumption for a typical residential customer - GJ|