Questions

What is a fixed rate?

A “fixed rate” with Tetra gives you this:

  • 100% locked-in rate for the term of the contract. (Note: your utility can’t offer you this option)
  • Protection from adverse price increases during the term of the plan
  • Choices in term of the protection; 3 years or 5 years (Note: 5 year being the most popular)

Benefits of a Fixed Rate

  • You know exactly what rate you will pay each month (no surprises)
  • The potential for savings when natural gas prices rise above your fixed rate during the term of your plan
  • Convenience; you won’t receive an extra bill if you sign with Tetra. Our charges will be identified on your Utility bill and paid directly to your utility.

Will I be charged Transportation from Tetra Gas Services?

In the Union Gas Southern Ontario delivery area, all marketers are now responsible for transportation charges and this includes Tetra Gas Services.

Our rate is 5.5 ¢/m3.

If you live in the Union South area you should make sure you compare the transportation rates of marketers’ the same way you would compare commodity rates.

If you are not sure if you live in Union South’s territory click here.

What if I’m currently with another Marketer?

Provided your contract is coming up for renewal in the next 4 months, Tetra Gas Services will provide you with a start date after the end date of your current contract. All contracts end on the last day of the month and start on the first day of the month. Your utility (Union Gas/Enbridge) will always be your default supplier. If there is a delay between the end of your current contract and the start of your new contract your utility will provide you with gas at their variable rate.

HAVE YOU TOLD TETRA WHEN YOUR CURRENT CONTRACT ENDS?

I’ve locked my price with Tetra… now what happens?

Tetra Gas Services (Tetra) will take care of getting your fixed price plan set up with your utility (Union Gas/Enbridge Gas Distribution). Each utility has timetables and guidelines as to how and when we may enroll you. Once you are enrolled, your Tetra Gas Services fixed price will appear on your utility bill under the Gas charge or Gas Supply/Commodity Charge. You will never be billed separately by Tetra for your natural gas.

If your utility rejects your enrollment we will contact you immediately to resolve the issue. Their systems require precise information regarding:

  • your address;
  • postal code;
  • utility account number; and
  • the exact name that appears on your utility bill.

What if I move?

We require 90 days advance notice if you are moving and, in most cases, our agreement moves with you.

My natural gas bill lists several items. What are all these charges?

Natural gas bills consist of three main elements:

  1. the natural gas itself (the gas charge or gas commodity charge);
  2. long-haul pipeline transmission/transportation charges; and,
  3. local distribution and storage charges.

The natural gas charge or natural gas commodity part of your bill is typically the wholesale price of natural gas in a producing area. This wholesale price is the price that producers receive for gas from their wells, and this price fluctuates constantly with changing supply and demand.

The second charge covers the costs of long-range high pressure pipeline transportation of natural gas from producing areas to local distribution systems. These charges are regulated by federal or provincial authorities.

Local distribution charges relate to the local distribution company´s short-range delivery of gas to your house or business using low-pressure pipes. These charges may also include storage, load balancing, or other costs. Distribution rates are regulated by provincial authorities.

For a more detailed explanation, visit the Ontario Energy Board (OEB) website.

Are natural gas prices regulated?

Of the three parts of a typical natural gas bill (commodity, pipeline transmission, and distribution), the commodity price is not regulated, while pipeline and distribution rates are regulated. Commodity prices are determined by the interaction of natural gas supply and demand. Natural gas prices rise and fall every day with changing supply and demand. Important natural gas markets and pricing points in Canada are the intra-Alberta market, and the Dawn, Ontario market hub.

Pipeline transmission and distribution rates are regulated, with rates based on the cost of providing services. Pipeline rates are typically regulated by the National Energy Board (NEB), and local distribution rates are regulated by provincial authorities Ontario Energy Board (OEB).

What is the Ontario Energy Board?

The Ontario Energy Board (OEB) is the regulator of Ontario's natural gas and electricity industries. The Board also provides advice on energy matters referred to it by the Minister of Energy and the Minister of Natural Resources. The Board is a self-funding Crown corporation without share capital. The OEB also licenses all participants in the natural gas market who sell to low volume customers.

Tetra Energy’s OEB Licence is: GM 2005 0267

What if I have a Complaint?

If you have a complaint or concern, we really hope that you will contact us so that we can try and resolve the issue, together! If however we fail to come up with a satisfactory solution to your complaint or concern you are more than welcome to contact the Ontario Energy Board (OEB) toll free 1-877-632-2727, or in Toronto 416-314-2455.

Is there a Cancellation Fee?

There is NO cancellation fee if you cancel prior to reaffirming the contract.

Once you have reaffirmed the contract, we charge an early termination fee regardless of whether or not you have started flowing with us. The reason being, we purchase our fixed rate supply of natural gas for the entire three or five-years of your agreement BEFORE we post our fixed sales rate. So when you sign your agreement with us, we’ve already committed to the cost of the natural gas you’ll be using.

How do I switch from another marketer to Tetra Gas Services?

You are welcome to switch from another marketer to Tetra anytime but we urge you to read the cancellation requirements of your current marketer before doing so. There may be cancellation fees you are unaware of.

I don’t want to renew with my current marketer I want Tetra!

Marketers are legally required to send you a renewal package, no less than 60 days and no more than 120 days, prior to the end of your agreement.

Here’s where so many homeowners make a mistake – in some renewal packages there is a renewal cancellation form that you MUST fill out and return within 30 days of receiving it. Otherwise, they will automatically renew your contract for one year, typically at a very high rate. If you find yourself in the one year high rate boat without a paddle… there is one more chance to cancel. You can cancel this new agreement by notifying your marketer (in writing) within 35 days of receiving your first bill that reflects the new one-year rate. Miss this 35-day window and they’re probably going to make you pay their early termination fee.

We suggest reviewing your rate each time you get your utility bill
and make sure you know when your fixed rate plan is scheduled to end

Gas Price Fluctuations

During the term of your fixed price plan utility prices may fluctuate above and below your fixed price. If for example the market cost of natural gas falls due to circumstances beyond our control, such as weather, crude oil prices, economic recession, etc. As much as we’d love it to be otherwise, our supplier won’t reduce the cost of the natural gas we have pre-purchased for your agreement. On the other hand if prices increase during the term you will have the piece of mind in knowing that your price will not increase during the term.

Utility market rates are similar to that of a variable rate mortgage, your rate will change every three months to reflect the current market conditions leaving you vulnerable to price increases or worse yet… price spikes! These are especially taxing when they occur in the winter months when most home owners are consuming more natural gas to heat their homes.

This is why you can opt for the certainty of a Fixed Rate contract — like a fixed rate mortgage, your rate is locked in for the full term of the contract, regardless of what happens to natural gas prices.