Jan. 1, 2023
The Ontario Energy Board (OEB) has approved changes to the rates Enbridge Gas charges its customers effective Jan. 1, 2023. These new rates remain in effect through Mar. 31, 2023 and include any applicable temporary charges and credits.
We understand that energy affordability is a priority for Ontario families and businesses. With the OEB's approval, from October 2021 to September 2022 we took steps to smooth out the actual increase in natural gas prices charged by Enbridge Gas to help customers manage their energy bills. We continue to gradually recover the smoothed out costs over the coming months.
Please visit our business rates to view the rates specific to your location.
Yes, on Jan. 1, 2023, Enbridge Gas changed the rates our customers pay.
Details for the most recent rate change include:
|Rate M2||Rate 10||Rate 6|
Business customers who buy natural gas from Enbridge Gas will see a decrease in their natural gas bills ranging from about 5 percent to about 12 percent per year, depending on their location. The overall impact of these changes will depend on how much gas you use and whether or not you purchase your gas from a gas marketer.
Enbridge Gas buys natural gas and gas transportation services for our customers from the market and we pass these costs to you without mark-up. Delivery and storage rates are reviewed and approved by the Ontario Energy Board, which conducts an open review process with participation from consumer groups and Ontario municipalities.
Please visit our business rates section to view the rates specific to you and your location.
Feedback from our customers shows a preference for simple, high-level communications on items such as rate changes, with the option to access more detailed information should they require it. Starting in October 2022 for our large volume customers and January 2023 for our residential and business customers, printed rate inserts will no longer be included with your bill. You will see a message on your bill every time we change our rates. Please visit our residential rates or business rates sections for the most up-to-date rate information. This approach has the added environmental benefit of reducing paper use.
Because natural gas is a commodity, the market price can fluctuate with changes in the amount of readily available supply or in the level of demand for the product. We adjust customer prices for market fluctuations every three months to reflect changes in the market price.
Enbridge Gas has applied to the Ontario Energy Board for a change in the rates customers pay for the distribution and storage of natural gas in 2024. That application is going through the regulatory review process and if approved, would go into effect on Jan. 1, 2024. This current application is for Jan. 1, 2023 to reflect changes in what Enbridge Gas expects to pay for natural gas and the transportation of natural gas into our distribution system in Ontario, which is adjusted every three months.
The customer charge has increased by less than $1 a month to partially recover some of the fixed costs associated with maintaining a safe and reliable natural gas distribution system in 2023.
Enbridge uses a number of approaches to reduce the impact of market price changes on our customers including buying gas using a diversity of contract lengths which helps to moderate the impact of price volatility, and we have already purchased and placed into storage the natural gas supply that our customers will need this winter.
Gas costs - Gas commodity costs include information on the “Gas Supply Charge” and “Cost Adjustment” lines on your bill. The net natural gas rate reflects what we expect to pay for gas supplies and transportation services during the next year as well as any adjustments to make up the difference between our forecast cost for gas and actual costs from prior periods. Also, in the Union South rate zone (Rate M1 and M2), the cost of transportation to Ontario is included in the “Gas Supply Charge”.
Transportation costs - Transportation costs include information on the “Transportation to Enbridge” and “Cost Adjustment” lines on your bill and reflect the cost of transporting natural gas into Ontario from its North American sources.
Transportation costs vary depending on where you live due to changing fuel prices, pipeline tolls and available capacity on pipelines serving different parts of Ontario. For customers in the Union South zone (Rate M1 and M2), the transportation cost is included in the “Gas Supply Charge” line on your bill.
Delivery costs - Delivery costs include information on the “Delivery to You” line on your bill and reflect the cost of delivering natural gas to your home or business as well as an adjustment to make up the difference between our forecast and actual delivery rates from prior periods, through our safe and reliable distribution system. This charge also includes a facility carbon charge related to the federal government’s carbon pricing program and is associated with the costs to operate Enbridge Gas’ facilities to deliver natural gas to you.
Storage costs (for Union rate zone customers) - Storage costs include information on the “Delivery to You” line on your bill and reflect the cost of storing natural gas so it is available when you need it.
Customer Charge - The customer charge partially covers the cost of maintaining a safe and reliable natural gas distribution system. It includes things like meter reading, customer services and 24-hour emergency response.
Federal Carbon Charge - The federal carbon charge is 9.79 cents per cubic meter of natural gas. This charge increases annually each April. All of the money collected for this charge goes to the government. Visit our federal carbon charge page for more information.
Charges from Other Companies - Enbridge Gas provides a billing service to other companies that offer energy-related products and services. These companies are not owned by or affiliated with Enbridge Gas. If you decide to buy a product or service from a participating company, the charges will appear on the section of your bill called Charges from Other Companies. Enbridge Gas does not recommend, endorse or guarantee the products or services offered by such companies.
As part of the federal government's carbon pollution pricing program, a carbon charge applies to fossil fuels sold in Ontario, including natural gas. The federal carbon charge is 9.79 cents per cubic meter of natural gas. This charge increases annually each April. This excludes facilities that hold an exemption certificate issued by the federal government.
There is also a facility carbon charge included in the delivery or transportation charge on your bill. This charge is associated with the costs to operate Enbridge Gas' facilities.
For the average Ontario household, the federal carbon char7ge accounts for approximately $215-$235 of your annual natural gas bill, depending on your location.
All of the money that we collect for the federal carbon charge goes to the federal government. Learn more about the federal carbon pollution pricing program from the Government of Canada.
Enbridge Gas buys natural gas supplies from the market and we pay other pipeline companies to transport the gas from where it is produced in Western Canada and the U.S. into our distribution system in Ontario. We adjust the rates we charge our customers for these items quarterly to reflect changes in market prices, which are passed through to our customers without mark-up. In addition, there are adjustments for the difference between our forecast for natural gas and natural gas transportation market prices, storage and distribution costs and the actual costs from prior periods.
Different areas of the province are served by a different mix of natural gas transportation pipelines and gas supply sources, and as such, the costs for Enbridge Gas to buy gas supplies and transportation services from the market vary by location. In addition, the costs to build and maintain a distribution pipeline system varies by the geographic location for several reasons including different soil conditions (e.g. rockier soil in the north), population density and the distance between homes/businesses and the need for and timing of infrastructure expansions and maintenance. These costs differences are reflected in the four geographically based rate zones.
You’ll see two general types of natural gas rate changes during the calendar year. The first type occurs quarterly, on the first of January, April, July and October, to reflect changes in what Enbridge Gas expects to pay for gas commodity and transportation services, as well as differences between forecast and actual costs for prior periods. This is shown as a change in the gas commodity and transportation rates on your bill and may also appear as a small change in delivery rates as Enbridge Gas also uses natural gas to power our delivery system. These changes, which are passed through to you without mark-up, help ensure that you’re billed at a rate that closely reflects the expected market price of gas.
The second type of rate change occurs annually and reflects the overall costs to run a safe and reliable natural gas distribution system. This may include a change in the delivery or storage rates, or the customer charge, depending on your location.
In addition, as part of the federal government's carbon pollution pricing program, a carbon charge applies to fossil fuels sold in Ontario, including natural gas. The federal carbon charge increases annually each April.
All rate changes are approved by the Ontario Energy Board.
If you buy natural gas and/or transportation services from an energy marketer, the price you pay for your gas supplies and/or transportation depends on the terms of the contract and is excluded from this rate change. If you have questions about their charges, please contact them directly at the number found on your bill. For other services purchased from Enbridge Gas (natural gas transportation, storage and delivery), residential customer rate changes depend on your location.
There is a rate adjustment resulting from the clearance of 2021 deferral and variance account balances. This adjustment refunds or collects the difference between the amount customers paid and the actual costs incurred. This will appear as a one-time adjustment on customers' January bills.
The rates we charge customers for natural gas and gas transportation services are based on a forecast of the prices we expect to pay to buy these items from the market. Because the actual market costs can differ from our forecasts, adjustments are made quarterly (Jan. 1, April 1, July 1 and Oct. 1) to either refund or collect the difference so that you only pay the actual costs for these services and nothing more. These costs are passed on to customers without any mark-up.
No, the billing period doesn’t begin and end on the first and last days of each month but covers a period of approximately one month beginning and ending at approximately the same time in the month. Natural gas consumption for the period prior to a rate change is billed at the old rate and gas consumption after a rate change is billed at the new rate. The number of days at each rate depends on the monthly billing cycle of your account.
Natural gas is the best value for your energy dollar at about half the cost of oil or propane, and about 23 percent cheaper than electricity. Enbridge Gas is committed to helping homes and businesses manage their gas bills.
We understand that this is a challenging time for businesses. Enbridge Gas offers enhanced payment plans for customers who have concerns about their ability to pay their utility bill which will allow them to make smaller payments over time until the amount owing is repaid, and late fees will be waived during the repayment period. Find out more about available options for your business.
Conservation is one of the best long-term ways to reduce energy costs. We understand that to stay competitive you need to closely monitor your ongoing energy use, invest in energy efficiency, and take advantage of valuable rebates and incentives. Enbridge Gas provides a range of tools and education to give consumers and businesses the power to take control and manage their energy use.