Posted: Jan. 31st 2014
Canada Energy Market Report – January 2014
The above average cold temperatures in the east left their mark on Ontario energy prices. The electricity Price in Ontario doubled compared to the previous month. This happened when many experts predicted that the electricity price will never exceed the 4 cent/kwh level again. The high price put enormous pressure on the Global adjustment which averaged at a record low of 1.26 cents/kwh in January. The increase in market price is the result of many days of high electricity demand coupled with the high generation cost due to an increased natural gas price.
The extreme high demand for gas heating during the bitterly cold month of January created many headaches for suppliers and consumers alike. In the past, many consumers on interruptible gas rates had little concern about curtailments and if they were curtailed, the cost of gas stayed within an acceptable price range. This was not the case for this winter. Consumers in need of gas during an interruption call had to go deep in their pockets. We saw days with the gas price reaching the $ 90 GJ mark. Many consumers were also caught running short on gas at their balancing checkpoints. Balancing gas has been very costly ranging between $ 10 and $ 30 GJ.These stories underlines the importance of being ready and prepared for the unforeseen in a volatile natural gas market.