Frequently Asked Questions - Gazifère

Frequently Asked Questions

Gas from Renewable Sources

All the answers to your questions about gas from renewable sources

Gas from Renewable Sources

What is renewable energy?

Renewable energy is any source of energy that can be renewed naturally fast enough to be considered inexhaustible within the human time scale.

What are the sources of renewable energy?

  • Biogas (Renewable natural gas)
  • Solar power
  • Wind power
  • Hydropower
  • Geothermal power
  • Tidal power

What is Gas from Renewable Sources (GRS)?

Gas from renewable sources is renewable gas produced from organic waste (biomass) coming from farms, forests, landfill sites and water treatment plants. It can be used for the same applications as conventional natural gas. This fully renewable energy has several advantages, including a reduction in greenhouse gas (GHG) emissions by avoiding methane emissions linked to burying organic residual materials. Green hydrogen is also considered a renewable source gas.

How does GRS supply work?

When you purchase a certain volume of GRS, it means that amount will be injected into the natural gas distribution system. Once injected, GRS gets mixed in with the traditional natural gas that is already in the distribution system supplying our customers. There is no separate GRS distribution system whereby GRS gets directly delivered to customers. Purchasing GRS means buying the green attributes of that product.

What are the advantages of GRS for the planet?

  • Completely renewable
  • Replaces fossil energy with renewable energy
  • Avoids methane emissions from buried organic waste

What are the advantages of GRS specifically for consumers?

  • Voluntary and flexible: for now, anyone buying GRS does so on a voluntary basis. Customers can choose to take 1% to 100% of their gas consumption as GRS.
  • Clean and eco-friendly: GRS enables customers to reduce their carbon footprint and take action.
  • No change in equipment! This energy source is distributed and used in the same way as conventional natural gas, but it’s green!

Is GRS production considered carbon neutral?

  • If renewable sourced gas were not produced, any gas emanating from our household waste would either be released into the atmosphere in the form of methane (which is 25 times more harmful than CO2 during combustion) or incinerated in biomethanation plants, which has the same impact in terms of GHG emissions when the gas is consumed as natural gas.
  • To avoid those two scenarios, we give this gas a second life by recovering, cleaning and injecting it into the gas system to replace fossil natural gas. Waste recovery is the perfect example of the circular economy because we use that gas as an energy source. Thus, we can confirm that gas from renewable sources is carbon neutral because it does not contribute to increasing greenhouse gas emissions.

How much gas from renewable sources is injected into the Gazifère system?

Between 2020 and 2022, Gazifère injected 1% GRS into its system, and 2% in 2023, with the aim of 5% starting in 2025. That percentage is a requirement set by the provincial government, which does not prevent us from increasing it faster if there is sufficient demand and supply.

What percentage of GRS is right for me?

You can choose to designate between 1% and 100% of your consumption at the GRS rate. However, you must understand that the Government of Quebec has asked [1] Gazifère to deliver 2% of GRS in 2024, and that the costs associated with this obligation will be passed on to all customers if the 2% goal is not reached through voluntary opting in.

Thus, by opting for the GRS rate, you are voluntarily contributing to reaching that goal, and by agreeing to opt for at least 2% per month, or the equivalent of 24% annually (monthly percentage of GRS chosen by the customer (%) multiplied by the number of months opted in), you will likely pay off your portion of that obligation.

If Gazifère does not manage to sell its customers enough GRS through voluntary opting in and has to bill its customers to meet its obligation, you will be exempted by having opted for 2% per month at the GRS rate (the equivalent of 24% annually).

[1] Règlement concernant la quantité de gaz de source renouvelable devant être livrée par un distributeur : https://www.legisquebec.gouv.qc.ca/fr/document/rc/R-6.01,%20r.%204.3

How is the price of GRS set? Can it fluctuate?

All GRS supply contracts must be approved by the Régie de l’énergie. Gazifère is pursuing every opportunity to secure competitively priced GRS contracts. Consequently, its annual GRS needs can be met through different green energy producers.

In general, the molecular price of GRS will not fluctuate in a given year because Gazifère knows the price of its upcoming supplies by the time it sets the molecular price of GRS for that year.

That being said, the GRS rate will vary from quarter to quarter because it takes into consideration adjustment related to the cost of transportation, the molecule of gas and carbon emission credits, which are modified every quarter.

A calculator is available on our Web site at www.gazifere.com to easily estimate the percentage point cost of GRS.

Socialization of gas from renewable sources (GRS)

Why does Gazifère not bear the additional cost of GRS for all customers?

The costs associated with acquiring GRS stem from Quebec’s Regulation respecting the quantity of gas from renewable sources to be delivered by a distributor, and aims to position Quebec as a leader in the area of renewable energy by placing consumers at the centre of the initiatives. Gazifère, like every natural gas distributor, is required to deliver a certain quantity of renewable natural gas annually to meet the obligation, and the costs associated with that process must subsequently be recovered from customers.*

*Analyse d’impact réglementaire – Projet de règlement concernant la quantité de gaz naturel renouvelable devant être livrée par un distributeur – Ministère de l’Énergie et des Ressources naturelles (August 2018 and February 2019).

Why was the additional cost of GRS not imposed on all Gazifère customers from the outset?

Since 2020, we have been offering our customers the chance to contribute to a better environment by opting for the GRS rate. Customers who voluntarily agree to designate part of their consumption at the GRS rate support the GRS case and help reduce GHG and methane emissions. We are confident that over time, recognition of the ecological benefits of renewable sourced gas will enable sufficient customers to opt in voluntarily and cost sharing will no longer be necessary.

Do all Gazifère customers have to pay these fees?

Yes. All residential, commercial, institutional and industrial customers are subject to the adjustment approved by the Régie de l’énergie. However, customers who already opted in voluntarily for the GRS rate at the minimal percentage of 1% a month for 2022 are exempt from cost socialization in 2024.

How do you calculate the GRS adjustment?

Customers who did not opt in to GRS in 2022 are billed according to their monthly consumption in 2024 multiplied by the socialization rate of $0.0143/m³. Given that Gazifère purchases the minimum quantity of GRS to meet its regulatory obligation, costs not covered by the sale of GRS volumes on a voluntary basis in 2022 will be passed on to customers who did not voluntarily opt in in 2022.

If I opted to pay the GRS rate in 2023, do I still have to pay that adjustment?

Given that the adjustment concerns volumes that were not sold in 2022, if you did not voluntarily opt in to the GRS rate at a minimum of 1% from January to December 2022, you will see an adjustment on your monthly bill in 2024.

Will I have this adjustment every year?

At the end of each year, we assess the % sold based on our obligation, and then proceed with an adjustment, as required, a year later. For example, if there is an unsold balance at the end of 2023, we will apply a cost adjustment starting on January 1, 2025. However, if the inventory is completely sold, no cost sharing will be necessary.

How much do I have to opt in for to avoid future socialization?

The Government of Quebec asked Gazifère to deliver 2% of GRS in 2023 and 2024. By agreeing to opt for at least 2% per month starting in January 2024, you will be exempted from a future rate adjustment for GRS in 2026.

Can I contribute more?

Yes, absolutely! Additional contribution remains voluntary and flexible. We invite you to complete the form OR to contact our customer service at 819-771-8321.

Information about the January 1st, 2024 rate adjustment

Changes in the prices of several components of the natural gas bill came into effect on January 1, 2024. Some went down, and others went up. The purpose of this FAQ is to explain those changes.

What accounts for the drop in the price of supply (molecule) of natural gas as of January 1, 2024?

Gazifère adjusts prices based on the market. The cost of a molecule of natural gas fell from 12.63 ȼ/m³ to 11.45 ȼ/m³ on January 1, 2024. We resell that molecule to our customers at the same price we paid for it. Our profits essentially come from the distribution of natural gas, not its resale. In order to promptly pass on any price changes, Gazifère adjusts its rates four times a year. Those rates are approved by the Régie de l’énergie.

Why has the cost of transporting natural gas risen?

The cost of transportation has increased due to higher prices. The cost of transporting natural gas (sales) rose from 4.28 ȼ/m³ to 4.71 ȼ/m³ on January 1, 2024. However, the cost of Dawn-T transportation fell slightly, from 0.94 ȼ/m³ to 0.90 ȼ/m ³.
Gazifère does not generate any profits from this component.

What accounts for the increase in distribution rates?

Distribution rates are affected by the cost of load balancing and the cost of life overall, both of which have risen. The price of distribution covers Gazifère’s cost of distributing natural gas to your home or business, including managing and maintaining the system. Those rates are approved on a provisional basis by the Régie de l’énergie.

Why is the socialization rate increasing?

This is calculated based on the costs related to the minimum volume of gas from renewable sources purchased by Gazifère to meet its regulatory obligations and revenue from the voluntary purchase of gas from renewable sources by its customers. The cost of socialization of unsold gas from renewable sources in 2022, provisionally approved by the Régie, is 1.43 ȼ/m³ (compared to 0.74 ȼ/m3 in 2021), and applies from January 1, 2024 to December 31, 2024. This increase over 2021 stems from higher supply costs in 2022. Only customers who did not voluntarily opt for the monthly minimum of 1% required in 2022 (2% since January 2023) will be billed for this cost.

Why is the carbon emission credit increasing?

The Régie provisionally approved an increase in that rate from 5.38 ȼ/m³ to 10.23 ȼ/m³ effective January 1, 2024. This increase essentially stems from the increase in the cost of acquiring carbon credits under the cap-and-trade system, which is equivalent to the carbon tax in Quebec.

Will natural gas remain an excellent energy choice?

Definitely! Natural gas offers a level of comfort unmatched by any other energy source.

How can I reduce my energy consumption?

Gazifère proposes simple, efficient and practical solutions for reducing your energy consumption, such as the installation of a smart thermostat. In fact, Gazifère offers $100 to its customers who buy and install one.

Never turn off your thermostat! Instead program it to keep a 3-degree Celsius difference between the temperature you want when you are at home and the one when you are not, or for overnight.

For additional information about our energy efficiency programs, consult our guide on cash incentives.

You have more questions? Contact us!