November 2024
Natural gas is invisible – both colourless and odourless. Perhaps this is why so few in high-rise and condominium buildings are aware of its importance.
It is a cleaner, cheaper and more efficient alternative to coal or heating oil. In North America, natural gas is abundant and one of the cheapest sources of heat and energy.
Natural gas is a necessary part of living in a high-rise building. While electricity powers most equipment and personal items in a building, high-rise and condominium living would be quite different without natural gas.
Historical Use of Natural Gas
Traditionally, natural gas was used to heat homes and businesses in the winter.
Electricity is a more expensive source of energy for heating water or the interior of buildings. In Ontario, natural gas is used in the production of electricity and an integral part of provincial efforts to reduce pollution and address climate change.
Natural Gas in High-Rise Buildings
Most buildings have a natural gas furnace to produce heat and hot water as one way to lower utility costs. It allows Canada to have one of the lowest cost sources of heat anywhere. This lowers
the cost of operating natural gas-powered systems by about 33 percent as compared to systems requiring electricity.
Some buildings rely on natural gas to power emergency generators, barbecues and some appliances in units, on balconies and in outdoor common areas.
Natural Gas Pricing
Volatility of natural gas prices can be controlled or limited with locked-in pricing contracts offered by certain natural gas suppliers
While inexpensive, natural gas prices can be volatile with rates changing daily. Prices tend to be lower during mild winters and higher when the weather turns brutally cold and more severe. This volatility can be controlled or limited by working with certain natural gas suppliers.
Enbridge is the gas distributor for Ontario. Their role is to ensure a safe and reliable supply of natural gas to customers in the province. They own and maintain a network of pipes across the province that deliver natural gas to residential homes, high-rise and condominium buildings, and businesses. Their fees include transportation and delivery of natural gas to end users.
Natural gas prices are determined in agreement with the Ontario Energy Board. Enbridge does not offer a way to lock in a fixed price for natural gas nor do they offer price negotiation.
Other natural gas suppliers, such as Canadian RiteRate Energy, allow natural gas users to lock in prices when they are low to provide protection against price increases. They will contract with condominium and high-rise buildings to supply natural gas at a fixed or floating rate which offers pricing and budgeting benefits to purchasers.
Wouter Germans at Canadian RiteRate Energy explains that “smart customers will look to buy long term contracts when natural gas prices are historically low. These are the customers who call us and ask about extending their current contract to lock in lower prices for financial savings, stabilize their cash flow and improve the accuracy of their budget forecasts over a period of years.”
Those who understand how natural gas is priced save money and stabilize their utility costs by working with a natural gas provider offering contract pricing
Those who understand how natural gas is priced save money and stabilize their utility costs by working with a natural gas provider offering contract pricing.
