Rate 6 - Commercial and Industrial

Natural Gas Prices Have Changed

The Ontario Energy Board ("OEB") has approved changes to Enbridge Gas Distribution's rates effective January 1, 2017.

For a typical commercial and industrial heating customer, the changes will result in an increase of approximately 11% annually. The increase is primarily due to the new charges from the Ontario Government’s cap and trade program. To learn more about cap and trade, visit enbridgegas.com/capandtrade. The chart below provides a breakdown of the annualized changes for all costs including changes in North American natural gas prices and changes to Enbridge’s 2017 rates. The total effect on your bill will depend on how much gas you use. Our supply prices are based on a forecast of market prices for the next 12 months. The forecasted prices are reviewed every three months and adjusted accordingly. If our forecasts are over or under our actual costs, we refund or collect the difference from customers through cost adjustments.


Gas Supply Charge

The Gas Supply Charge has increased from 11.205 cents per cubic metre ("¢/m³") to 11.4683 ¢/m³.

The Gas Supply component of the Cost Adjustment is currently a refund of (0.9150) ¢/m³. This refund, combined with the Gas Supply Charge results in a new total effective Gas Supply rate of 10.5533 cents per cubic metre.

Enbridge Gas Distribution does not make a profit on the price of natural gas.

Transportation to Enbridge

The Transportation charge has decreased by approximately $70 per year for a typical customer due to lower costs for transporting natural gas to Ontario. 

Delivery to You

The Delivery Charge has increased by approximately $28 per year for a typical customer due to changes to Enbridge's 2017 rates.

As previously communicated, cap and trade costs, related to greenhouse gas emissions from the natural gas you use and that we use to deliver it to you, will be included in the Delivery to You charge on your bill starting January 1, 2017. The OEB has approved an interim rate of 3.3518 ¢/m³ to recover cap and trade costs. This results in an increase of about $758 per year for a typical customer. If you are a customer who is a Non-Large Final Emitter you will be charged a cap and trade Customer Related Charge of 3.3181 ¢/m³ and the cap and trade Facility Related Charge of 0.0337 ¢/m³. If you are a Large Final Emitter you will only be charged the Facility Related Charge of 0.0337 ¢/m³.

Cost Adjustment

The total Cost Adjustment refund is (0.7947) ¢/m³, effective until December 31, 2017. This represents a decrease of about $109 per year when compared to the lower refund that was in place from October 1 to December 31, 2016.

Site Restoration Clearance

The Site Restoration Clearance refund is (0.3975) ¢/m³, effective until December 31, 2017. It reflects changes in an estimate of ongoing and future site restoration costs. Site restoration costs are incurred when gas distribution pipelines are replaced or retired over the life of the gas distribution system.

Commercial and Industrial Rates

Charges for gas used from January 1, 2017 on will be calculated using the new approved rates as shown below. The annualized impact is based on a typical commercial and industrial heating and water heating customer who uses 22,606 cubic metres per year.



Monthly Charges Monthly Rates January 1, 2017 Annualized
Increase/(Decrease)
Customer Charge $70 No Change
Gas Supply Charge 11.4683 ¢/m³ $59.53
Delivery to You See breakdown below* $27.85
Cap and Trade (included in Delivery to You on the bill) 3.3518 ¢/m³ $757.71
Transportation to Enbridge 5.3274 ¢/m³ ($69.68)

*Delivery to You Breakdown
Amount of gas used per month in cubic metres Cost in cents per cubic metre ¢/m³
First 500 9.7343 ¢/m³
Next 1050 7.7937 ¢/m³
Next 4500 6.4348 ¢/m³
Next 7000 5.5617 ¢/m³
Next 15250 5.1738 ¢/m³
Over 28300 5.0763 ¢/m³
Cap and Trade Customer Related Charge (if applicable) 3.3181 ¢/m³
Cap and Trade Facility Related Charge 0.0337 ¢/m³


Cost Adjustment Breakdown
Cost Adjustment (0.7947) ¢/m³ ($109.12)
Components of Cost Adjustment
Gas Supply (0.9150) ¢/m³  
Transportation (0.0462) ¢/m³  
Delivery 0.1665 ¢/m³  


Site Restoration Clearance
Site Restoration Clearance (0.3975) ¢/m³ $9
Total Annual Change   $675.29


Enbridge Gas Distribution provides safe, reliable delivery of natural gas. For more information about Enbridge Gas Distribution rates, call 1–877-362-7434.


* Note: Penalty for late payment

Enbridge Gas Distribution charges are due when the bill is received, which is considered to be three days after the bill is rendered, or within such other time period as set out in the Service Contract. A late payment charge of 1.5% per month (19.56% effectively per annum) of all of the unpaid Enbridge Gas Distribution charges, including all applicable federal and provincial taxes, is applied to the account on the seventeenth (17th) day following the date the bill is due.

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EFFECTIVE DATE:
  January 1, 2017

IMPLEMENTATION DATE:
  January 1, 2017

BOARD ORDER:
  EB-2016-0326

REPLACING RATE EFFECTIVE:
  October 1, 2016