Natural Gas Price Protection and Predictability Options
As with most commodities, natural gas price volatility can be extreme. Natural Gas prices are near multi-year lows thanks mainly to a combination of two consecutive mild winters, higher than average storage reservoir levels and reduced demand so far in 2017 from the power generation sector.
This type of volatility can create challenges to those housing providers that operate on tight budgets and in this uncertain market. Having a pricing strategy in place is key to controlling your costs and budget over time. Looking forward, a forecasted hot summer (7th warmest since 1950 according to MDA Weather Services), slowing natural gas production and increased demand from the Mexican natural gas market will put upward pressure on natural gas prices.
Now is the time to fix price on natural gas. Failing to fix your price will result in being on a utility variable price which does not provide any protection from these expected rising natural gas prices. In addition, the Ontario government has just removed the ability to pass along the Guideline Increases for utilities.
To assist members with managing energy budgets, FRPO partnered with ECNG Energy L.P. over 20 years ago and have been providing stable and predictable natural gas pricing to members ever since. Year after year through competitive supplier tenders and aggregation of member volumes, participants in our program have benefited from low natural gas pricing that remains competitive with Utility pricing and in many cases, savings during high priced market times.
Since 1987 ECNG has grown into Canada’s largest national full service energy management consulting firm managing over a billion dollars’ worth of natural gas and electricity annually. With this scale of operation, ECNG receives very attractive pricing proposals from the supply and transportation communities. To enroll or renew please contact Sasha Giurici (905) 635-3280 or email@example.com
Please note that prices and program offerings are updated annually.
Click here for: Natural Gas Market Conditions Information
- To offer members the opportunity to fix their natural gas costs for a specific period of time.
- To offer a more beneficial alternative to both the utility price program and “retailer” programs.
- To provide a constant, guaranteed price for budgeting purposes.
- To provide flexible options to members with larger consumption volumes.
The Power of the RFP:
- ECNG is an expert at putting the supply community in competition for clients’ needs.
- When ECNG purchases on behalf of FRPO members, volumes are aggregated together with other members so that Tier 1 natural gas suppliers are attracted to offer wholesale and institutional level pricing in a competitive setting.
- ECNG then purchases from the supplier that provides the best price at or below the authorized price.
- This approach has proven to be a major driver of measurable benefits to FRPO members.
- As a member of the FRPO natural gas program you have the added advantage of the group buying power within the program.
- The consumption volumes for each member are aggregated together providing a higher volume when purchasing the natural gas supply resulting in better pricing.
- As part of the FRPO natural gas program the price on your bill is what you pay, there are no additional costs associated with the program.
- All volume balancing is completed as part of the group and there are no additional costs for this function as you would be subject to as a standalone customer in a market based program.
Large Member Opportunities:
- Members that consume over 1,000,000m3 per year have the opportunity to have a customized purchase program designed for their specific needs.
- This program provides all the benefits of being part of a larger group while providing more price flexibility.
- An individual strategy will be developed based upon the information provided.
- Members will have the opportunity to adjust their strategies as market conditions change.
Energy Savings Opportunities:
- Members of the FRPO natural gas program have the opportunity to access the FRPO Energy Efficiency Program.
- To assist members in achieving energy reductions and provide ongoing savings through the ECNG Alliance Partner program.
- Provide members with timely information regarding current energy rebates and program incentives.
- Offer members the opportunity for customized solutions utilizing a network of preferred partners.
- Identify savings potential for each project.
- Provide a single point of contact for all energy savings programs and solutions.
Frequently Asked Questions
Will I receive another Natural Gas invoice?
The bill you receive from your utility service will also include the cost of energy from the supplier(s), as we can aggregate multiple suppliers without increasing the number of invoices. The name of ECNG will appear in the body of the bill with a contact number.
What is the difference between the wholesale program offered by FRPO and Retail programs offered by Door Knockers?
Retail Programs are generally one product for one price, there is no negotiation on terms and the commitment is usually long term. The FRPO wholesale program provides access to Tier One suppliers and an RFP process combined with the aggregation of all members’ volumes saves 15% to 40% over retail prices.
What is the advantage of a fixed price program?
Your price remains constant allowing for better budgeting and you remove the fluctuations of the utility or market prices.
What is the benefit of being part of a member buying group?
The difference here is by joining a member group you are able to reap the benefits of aggregation. Which means consumers who join together to leverage their combined purchasing power when soliciting bids from energy suppliers. By combining your consumption with other like businesses you are now part of a large buying group. The result is usually a decrease in costs.
What is the term of the agreement?
The agreement term will vary depending on the option that you choose for your locations. Each year FRPO will release a new program with up to 3 options for you to choose from. At the end of each term FRPO will provide a new price offering based upon the current market prices.
What are my options at renewal?
Once the term of your agreement has been completed you will be sent a renewal letter including the new pricing options. At that time you have 3 options: a) renew for one of the terms and pricing options by completing the Agreement that accompanies the renewal notice; b) Do nothing and automatically renew for the 1 year term at the price listed; c) provide your termination notice in writing to be removed from the program at the end of your current term.
Why are the prices listed at or below the m3 price?
The prices listed are based upon the current market price and represent the maximum price members will pay. Once the annual program is closed and the purchase volumes determined ECNG will go to the market to purchase the natural gas supply. If the market price is lower at the time of purchase members will see that reflected in their supply price.
Does ECNG purchase the gas in their name and resell it to the FRPO members?
The gas purchases are made on behalf of the FRPO members once the renewal program has closed. All gas purchases are made on behalf of the members and each member has ownership of the gas purchased.
What happens if I sell or close one of my locations?
Since each member is responsible for the gas purchased the options would be: a) have the new owner assume the contract for the remainder of the term; b) early terminate the contract for that location and receive a debit or credit for the sale of the remaining gas purchased for the term. NOTE: If option b is chosen the debit or credit will be the difference between the purchase price and the market price at the time the gas is sold.
Is there a minimum consumption volume required to join the program?
Since this is a group program there are no minimum consumption requirements. A
Are there other options available if my location portfolio consumes larger volumes?
If your location portfolio consumes more than 1,000,000 m3 per year then we can offer a customized program.
What are the advantages in a customized program?
You receive the benefits of being part of a group program with more pricing flexibility based upon your individual needs.
How do I enroll into the FRPO Program?
Please contact Sasha at ECNG Energy to determine applicable volume. Once the applicable volume is established, ECNG will provide you with an appropriate enrollment form. Sasha can be contacted at (905) 635-3280 or firstname.lastname@example.org