Can you name the cheapest energy source available today?
October 31, 2016 by Amy Bunton
Aside from having the answer for trivia night, why is this important?
When making any decision involving money, it helps to have all the available options beforehand. We want to make sure you understand your choices when it comes to the energy you use in your home or business.
For example, did you know that heating space and water makes up for a whopping 78 per cent of the total energy used in your home or business? That can make a huge difference on your monthly bills.
So…which energy source is the least expensive?
Ten points if you guessed natural gas.
Why not electricity?
While we do have among the lowest electricity rates in Canada, it is still not the cheapest option. Natural gas is currently one third of the cost of electricity. That is an average savings of about $1,400 a year.
What about biogas?
Although our new rate for renewable natural gas (RNG) is more affordable and is cheaper than electricity, it is still more expensive than natural gas. Customers who use biogas currently pay twice the price of natural gas.
Show me the numbers?
We understand you have a lot of measurements to consider in a day: liters for gas, grams for vegetables, kilowatt hours (KwH) for electricity, plus Gigajoules (GJ) for natural gas. So we thought we could translate natural gas consumption into a measurement
you are already familiar with, your electricity bill, to compare the price.
The majority of British Columbians pay a Tier one rate for electricity of 8.7 cents/KwH and a Tier two rate of 13.1 cents/KwH. For a residential customer using an average volume, natural gas costs the equivalent of 3.6 cents/KwH (including carbon tax) which is 5.1 cents/KwH less than the tier one electricity rate and 8 cents/KwH less than the tier two electricity rate. For those customers that subscribe to a 100 per cent RNG blend, the cost is equivalent to 6.1 cents/KwH which is still 2.6 cents/KwH less than the tier one electricity rate and 7 cents/KwH less than the tier two electricity rate.
But didn’t natural gas rates just go up?
Even though the cost of gas rate changed on October 1, 2016, <it is still among the lowest this decade>.
It's not all about price
Beyond the cost savings of natural gas, you’ll also enjoy the benefits that natural gas appliances offer:
- convenience of direct heat and temperature control for cooking
- instant, cosy heat at a flick of a switch
- an abundance of hot water, when you need it
- cosy fireplace ambience – perfect for relaxing or entertaining
- and natural gas is produced in BC and provides jobs for thousands of British Columbians.
No matter your choice of energy, there are steps you can take to reduce your use and lower your bills. We have tons of tips and tricks for you.