Kitchener Utilities to reduce rates for natural gas July 1
KITCHENER Kitchener Utilities is reducing its residential natural gas rates by a combined overall seven per cent decrease, effective July 1, 2012, saving the average customer approximately $72 a year.
The combined impacts of the supply, transportation and delivery rate changes are expected to produce an overall rate decrease of seven per cent for the average residential customer, calculated based on annual consumption of 2,100 cubic metres of natural gas.
“I’m very happy to see this,” said Coun. Scott Davey. “It doesn’t impact our budget and it gives customers a break.”
The overall reduction in the annual average residential bill is primarily due to a decrease in the supply rate to 17.5 cents per cubic metre. The variable delivery rate tier change and decreases are as follows:
• 4.5172 cents per cubic metre for the first 100 cubic metres of monthly use;
• 4.3227 cents per cubic metre for the next 150 cubic metres;
• 3.8627 cents per cubic metre for monthly use over 250 cubic metres.
The daily fixed charge rate increases to 69 cents per day.
Kitchener Utilities takes a disciplined approach to buying natural gas and providing a natural gas supply with stable pricing. Recent customer research indicates that 78 per cent of respondents think stable rates are most important when thinking about natural gas supply, and 22 per cent preferred variable rates, where the price fluctuates up or down with the market.
Also, 95 per cent of respondents to Kitchener Utilities’ recent customer survey indicated their satisfaction with its natural gas pricing.
In 2005, about 73 per cent of survey respondents said that natural gas price consistency was most important when compared to the lowest price at any given point in time.
Kitchener Utilities does not make a profit on its natural gas supply program. It is operated at cost. Customers on its supply program pay what the utility pays its suppliers without any mark-up or discount and all Kitchener Utilities customers pay the same price.