Figure 7: Sample monthly residential gas bill – based on 7.37 GJ of consumption
This stacked area graph shows the breakdown of residential natural gas bills from December 2000 to January 2018. The sample bill is for 7.37 GJ of consumption per month in the province of Saskatchewan. The graph shows the amount spent on three bill components: the commodity price, the variable charges, and fixed charges.
The commodity price component has fluctuated, but decreased from $33.31 per month on December 2000, to $26.90 per month on January 2018.
Variable charges increased from $14.17 per month in December 2000 to $17.92 per month in January 2018.
Fixed charges increased from $10.50 per month in December 2000 to $23.20 per month by January 2018.
Natural gas provider
SaskEnergy provides most of the residential natural gas service in Saskatchewan. SaskEnergy is a Crown corporation owned by the Government of Saskatchewan and has the exclusive legislated franchise to distribute natural gas in the province.
The ‘gas consumption charge’ is a consumption based charge for the cost of natural gas that a customer uses. SaskEnergy hedges against price volatility by entering into futures contracts for gas. The commodity price component on bills includes the costs of these financial contracts. SaskEnergy updates the gas consumption charge one to two times per year, based on market conditions. The commodity price component has fluctuated, but decreased from $33.31 per month ($4.52 per GJ) on December 2000, to $26.90 per month ($3.65 per GJ) on January 2018.
The ‘delivery charge’ on Saskatchewan bills is a consumption based charge that collects revenue to pay for moving and storing gas. This charge goes towards the transportation of gas to distribution systems in Saskatchewan, the cost of distributing gas to households, the cost of gas storage, and the maintenance of SaskEnergy’s infrastructure. The delivery charge increased from $14.17 per month ($1.92 per GJ) in December 2000 to $17.92 per month ($2.43 per GJ) in January 2018.
The ‘basic monthly charge’ is a fixed, per month charge. This charge collects money that covers a household’s gas meters, meter reading, customer account administration, and customer service. The basic monthly charge increased by about 6% per year, from $10.50 per month in December 2000 to $23.20 per month by January 2018.
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