Buying on the open market
Natural gas is deregulated and traded on the open market, much like oil or gold. Free trade has created a North American market for natural gas and a continental network of pipelines allows gas producers to sell their product where demand is greatest.
Companies like Cascadia Energy don’t produce natural gas; we have to compete on the open market to purchase gas for customers here in British Columbia, and the price we pay for natural gas is the price customers pay – there is no markup on the cost of gas.
We manage our gas supply with the aim of reducing the effect of market volatility on our customers.
We try to buy gas at the lowest possible price by purchasing gas from a variety of sources in B.C. and Alberta. When possible, we try to lock in the price of gas through the use of contracts.
We also put gas in storage during times of low demand for use at a later date. This storage buffer allows us to bridge the gap between supply and demand, helping cushion our customers from the fluctuations of the daily spot price charged for natural gas.