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Active Energy > Price Protection Plans

Did you know?

Every Canadian produces at least five tonnes of greenhouse gases directly each year and this number is steadily increasing.

Canada produces a total of 747 million tonnes of carbon dioxide equivalent (CO2eq) annually.

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An energy contract with Active Energy allows you to purchase natural gas and electricity for a guaranteed fixed rate that is locked in for a period of up to five years. This protects you from the volatility of the energy markets that can rapidly fluctuate. With the security of a fixed energy rate, you can more effectively budget over the long-term for you energy needs.

Actives Energy Supply Plans are similar to a fixed rate mortgage plan where you have the option to lock in at a specific interest rate for a period of years. Similarly with mortgage rates, the secret is to lock in your natural gas rate when prices are low. We have information on current market prices and long-term trends in the natural gas market.

It is important to note the following regarding your energy contract with Active Energy:

  1. Under a natural gas contract with Active Energy you will pay for the supply of natural gas and where applicable transportation to bring the gas to Ontario. The Price Comparison Form, provided when you sign-up, outlines this charge. With all energy contracts (natural gas and electricity), you are required to pay utility charges- these charges have nothing to do with Active Energy. For natural gas these charges include: administration, transportation, delivery and storage. For electricity these charges include: administration, delivery, regulatory and the debt retirement. You will also have to pay the Global Adjustment every month on your electricity bill.

  2. It is possible that the fixed contract price for the supply of natural gas and electricity may change during the term of your agreement depending on your consumption and the market prices for the commodity. For natural gas, the price remains fixed if you use under 3,300 m3 in a year. If during a year you use more than 3,300 m3, Active may charge you an additional rate for the volume above 3,300 m3, The same applies, to your electricity contract. The price remains fixed for usage up to 10,000 kWh in a year. Active may charge you an addition rate for the volume above 10,000 kWh. Lastly, Active may terminate the contract because of a regulatory change. All these terms are outlined in Active’s terms and conditions.

Advantages of Fixed Price Plans

Peace of mind knowing that the price you pay for natural gas will not increase for the period of your fixed rate contract. Potential for cost savings when prices rise above your fixed rate, as you will continue to pay the rate you locked in with natural gas supplier. The ability to budget your natural gas costs over the long-term, rather than having to adjust your budget for monthly cost fluctuations.

Risk Management

Natural gas is a traded commodity on the New York Mercantile Exchange (NYMEX). As a result, gas prices are determined by the supply and demand in the North American market. Regulated local energy utilities buy their gas on the open market and pay the current market rate.

The difference between the regulated utilities and natural gas marketers is that the marketers are allowed to hedge their bets by buying and selling on the energy commodities market, something that utility companies aren't allowed to do. What this means is that natural gas marketers are able to purchase bulk natural gas on the open market when prices are low. This allows gas marketers to offer consumers better prices and fixed natural gas rates that shelter their customers from the fluctuations of the energy markets.



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