Why do natural gas prices change?
Enbridge Gas buys natural gas at a number of market supply hubs in Western Canada and the U.S. We pay market prices for natural gas and then pay other pipeline companies to transport the gas from supply hubs 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 costs and the actual costs from prior periods.
By buying gas using a diversity of contract lengths, we help reduce the impact of market price changes for our customers.