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 July 1, 2017.

For a typical commercial and industrial heating customer, the changes will result in an increase of approximately 5% annually. The increase is due to higher natural gas prices in North America and an increase to the Cost Adjustment. The Cost Adjustment reflects the difference between our forecast costs and actual costs from prior periods. The chart below provides a breakdown of the annualized changes. 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 11.398 cents per cubic metre ("¢/m³") to 12.0857 ¢/m³.

The Gas Supply component of the Cost Adjustment is currently a charge of 0.3660 ¢/m³. This charge, combined with the Gas Supply Charge results in a new total effective Gas Supply rate of 12.4517 ¢/m³.

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

Transportation to Enbridge

The Transportation charge has decreased by approximately $1.22 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 $8.31 per year for a typical customer due to higher delivery related costs.

As of January 1, 2017, Delivery to You includes applicable charges from the Ontario government’s cap and trade program. These costs relate to greenhouse gas emissions from the natural gas you use and that we use to deliver it to you. The OEB-approved interim cap and trade rate remains at 3.3518 ¢/m³. That represents no change on a customer’s annual bill. 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 charge is 0.3131 ¢/m³, effective until June 30, 2018. This represents an increase of about $176.89 per year when compared to the refund that was in place from April 1 to June 30, 2017.

Site Restoration Clearance

The Site Restoration Clearance refund remains at (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 July 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 July 1, 2017 Annualized
Increase/(Decrease)
Customer Charge $70 No Change
Gas Supply Charge 12.0857 ¢/m³ $155.46
Delivery to You See breakdown below* $8.31
Cap and Trade (included in Delivery to You on the bill) 3.3518 ¢/m³ No Change
Transportation to Enbridge 5.4259 ¢/m³ ($1.22)

*Delivery to You Breakdown
Amount of gas used per month in cubic metres Cost in cents per cubic metre ¢/m³
First 500 9.7624 ¢/m³
Next 1050 7.819 ¢/m³
Next 4500 6.4581 ¢/m³
Next 7000 5.5836 ¢/m³
Next 15250 5.1952 ¢/m³
Over 28300 5.0976 ¢/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 0.3131 ¢/m³ $176.89
Components of Cost Adjustment
Gas Supply 0.3660 ¢/m³  
Transportation (0.0914) ¢/m³  
Delivery 0.0385 ¢/m³  


Site Restoration Clearance
Site Restoration Clearance (0.3975) ¢/m³ No Change
Total Annual Change   $339.44


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:
  July 1, 2017

IMPLEMENTATION DATE:
  July 1, 2017

BOARD ORDER:
  EB-2017-0181

REPLACING RATE EFFECTIVE:
  April 1, 2017