FAQs
No. LDC profits do not come from the sale of natural gas, but from the use of their distribution networks. They are completely indifferent whether a gas user buys its gas supply directly from a supplier or not. RBC is in the business of securing natural gas supply for buyers at a price that best suits their needs. It is actually in the best interest of an LDC for you to source your gas from a company such as RBC, because we provide a valuable service that they cannot; a fixed price.
Do not give your LDC account number to anyone until you are ready to transact. It is confidential information, which can be misused.
If you do not deal directly, or are under contract with a supplier or natural gas marketer, you will pay the utility’s Reference Price. This regulated price is a forecast established either monthly or quarterly by your local utility based on best available market price indications and will fluctuate up and down each time it is established. It may also include an adjustment factor to reconcile the forecast price vs actual cost, which makes it difficult for companies to accurately establish an annual budget or purchasing strategy.
For customers seeking price stability or price certainty without adjustment, the Reference Price may not provide the best solution and flexibility. Clients who want to eliminate this uncertainty can take advantage of a wide range of RBC products geared towards budget stability.
The volatility that is a distinct characteristic of natural gas procurement can hamper your bottom line at times when you can least afford it. Our professionals can assist you in structuring sound purchasing strategies that will help you mitigate the negative impacts of this volatility.
Brokers
Brokers act as intermediaries between an end user and the supplier. They negotiate the contract between the two counterparties but do not purchase or sell natural gas contracts themselves. Their service fee is either charged directly to the customer or included in the price the customer pays the supplier.
Agents
Agents represent the interests of natural gas users and are authorized to negotiate supply agreements on behalf of the clients they represent. Their service fee is either charged directly to the customer or included in the price the customer pays the supplier.
Suppliers
A supplier is a company that is either a producer of natural gas that sells its production directly to very large end-users, or a marketing company that buys and then sells the contracts to consumers.
RBC is a supplier and transacts directly with its customers. We have direct access to various energy markets allowing RBC to provide very competitive prices to both natural gas buyers and sellers. To complement our competitive prices, RBC can also perform the function and offer many of the services of an agent without the added service fee. Our value added services include, but are not limited to, LDC contract management, balancing, nominations and market reports. If a customer prefers to work with an agent or broker, RBC will work with the customer and their broker/agent to meet the customer’s requirements.
We have various billing options to accommodate our clients’ needs – the most common of which is Direct Billing, in which RBC will provide customers with an invoice for the commodity purchased or sold. Clients will benefit from our bi-lingual (English and French) custom invoicing system, which is among the clearest in the industry.
Our offices are located in Montréal and Toronto but our sales staff will happily travel to meet you! Find our contact information.
AECO/NIT
Alberta Energy Company / Nova Inventory Transfer - an important storage and exchange point for Canadian natural gas located within Alberta. The majority of transactions occur at this point. Aeco is linked to the Empress delivery point by the Nova Gas Transmission Limited pipeline system and other delivery points to BC and the US border.
AECO Basis
Pricing differential between Aeco in Alberta and the Henry Hub (NYMEX), expressed in $US/MMBtu.
External Sites of Interest
Local Distribution Companies
Regulatory Bodies
Pipelines
