New natural gas rates to start Oct. 1, 2020
Although natural gas is abundant, certain factors—such as supply and demand and even the weather—can affect how much it costs. Every three months we carefully review market prices, compare them with the rates customers currently pay and adjust rates up or down to reflect market changes. To help customers facing financial challenges due to COVID-19, we deferred the July 1, 2020 rate change and held rates steady through spring and summer.
Why are rates increasing in October?
It was a tough year for families, businesses and the economy. This economic downturn, coupled with an unusually warm winter, led to historically low natural gas prices in early 2020. As the economy recovers and demand for natural gas increases heading into the coming winter, market prices are rising.
The cost of natural gas remains relatively low
While the proposed increase in rates may seem high compared to earlier this year, this is because costs were at record lows. A typical residential customer will see an increase of about $5 to $10 on their monthly natural gas bill, depending on where they live, starting Oct. 1, 2020.
Natural gas is still the best value for your energy dollar
Support for customers
We’re committed to helping homes and businesses manage their natural gas bills. If you have concerns about paying your bill, support is available.
Enhanced payment plans
If you need more flexibility on payment dates and amounts, you can arrange to make installment payments to avoid late fees and disconnection.
Get a $500 emergency grant
If you’re having difficulty paying past-due bills, the Low Income Energy Assistance Plan (LEAP) provides a one-time payment of up to $500.
More information available through United Way Simcoe Muskoka.
Help to save energy and reduce costs
We have programs to help homes and businesses lower natural gas use, save money and improve indoor comfort.
Free upgrades for income-qualified homes
Up to $5,000 for energy-efficiency upgrades
Frequently asked questions
The rates will start Oct. 1, 2020 and remain in effect through Dec. 31, 2020.
Enbridge Gas buys natural gas supplies from the market and we pay other pipeline companies to transport the gas supply 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 markup. In addition, there are adjustments for the difference between our forecast for natural gas and natural gas transportation market prices, and the actual costs from prior periods.
The price of natural gas varies based on the amount of supply or demand, or even fluctuations in weather. Despite this increase, it’s expected that natural gas will continue to be the most affordable source of energy for homes and businesses.
You'll see two 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. These changes 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. All rate changes are approved by the OEB.
In 2019, the federal government implemented a carbon pricing program in Ontario which includes a Federal Carbon Charge applied to the cost of fossil fuels used by homes and businesses. Enbridge Gas is required to bill, collect and remit the federal carbon charge from our customers for the natural gas they use.
Enbridge Gas began incurring costs for the Federal Carbon Pricing Program on Apr. 1, 2019 but did not receive regulatory approval to include the charge on customer bills until Aug. 1, 2019. We recently received OEB approval to recover the costs incurred in the four-month period between April 1, 2019 and July 31, 2019 over a three-month period starting October 1, 2020. All of the money that we collect for the federal carbon charge will go to the federal government. Learn more about federal government carbon pricing.