Why the future
of natural gas
matters for Ontarians
Know the facts.
There is a lot of misinformation out there and we understand it can be confusing. Check out our Claims vs. Facts page for more information.
The Ontario Energy Board issued its Phase 1 decision on Enbridge Gas’ 2024 Rebasing application. The decision is disappointing on multiple fronts.
The OEB's decision has a direct impact on our ability to provide affordable and reliable energy to Ontario homes and businesses. Furthermore, it shows a clear opposition to the use of natural gas as a source of energy.
So, what’s at stake?
Millions of Ontarians will feel the impact in their everyday lives.
Affordability
The cost of all new natural gas connections and the aid to construct on commercial projects could increase, potentially rendering home ownership and new construction unaffordable.
Access
With the limits imposed on Enbridge Gas’ ability to expand and grow natural gas infrastructure, it will become increasingly difficult for new homeowners, as well as new and existing business customers, to access natural gas. The decision limits Enbridge Gas’ ability to invest in energy infrastructure that is vital to Ontario’s housing, manufacturing, agriculture, mining and consumer goods industries.
Growth
A significantly reduced capital budget means Enbridge Gas will continue to focus on sustaining safe and reliable operations, but we will not have access to the capital necessary to make investments that support growth. We are assessing the impact on new customer connections and current planned capital projects.
Energy choice
The restrictions imposed on Enbridge Gas’ ability to develop natural gas infrastructure will limit the energy choices available to Ontarians. This will mostly impact new homebuyers and businesses looking to expand in the province.
We remain committed to advocating for customer choice, energy affordability and reliability on behalf of Ontarians, now and into the future. We are challenging the OEB’s decision in two ways.
- On Jan. 22, 2024 Enbridge Gas filed a Notice of Appeal with the Ontario Divisional Court.
- On Jan. 29, 2024 we filed a Motion to Review the decision with the OEB itself.
On Feb. 22, 2024, the Ontario Government introduced legislation that, if passed, would reverse elements of the December 2023 decision that would have significantly increased the costs of building a new home in the province. Enbridge Gas applauds the Government of Ontario for advancing legislation and advocating for access to safe and reliable natural gas at a reasonable cost.
Hover over each category to learn how natural gas continues to play a critical role in Ontario.
Affordability
Natural gas provides twice the energy of electricity at a quarter of the cost on an annual basis. In addition, the cost of attaching to natural gas will increase the price of a new home by approximately $6,000 and more for new business or existing businesses looking to grow.
Reliability
Did you know that natural gas provides over 30 percent of the energy we use in Ontario, while electricity makes up around 16 percent? Natural gas delivers reliable energy, even throughout harsh weather conditions, thanks to our underground infrastructure. In fact, natural gas delivers five times more capacity than the maximum electricity demand in Ontario on a peak winter day.
Economic development
Natural gas is Ontario's energy backbone of industry and manufacturing, as its energy intensity is unmatched. The ability to provide customers with the energy they need to do business is imperative to Ontario’s economy.
Safety
We are always working to ensure the safety of our operations for our employees, neighbours, communities and the environment. We continuously invest in the integrity of our system, conducting almost 40,000 pipeline integrity inspections in 2022 and investments totalling $3.5 billion in the last 9 years.
Energy options
At Enbridge Gas, we have been focused on the transition to net zero for some time. We are committed to achieving net zero greenhouse gas emissions in our own operations, as well as advancing sustainable energy solutions like renewable natural gas and hydrogen to assist with Ontario’s energy transition.
Energy opportunities
Enbridge Gas is advancing a mix of sustainable technologies for many applications, including building heat. Natural gas supports the evolution to a more electrified future through low-carbon hybrid heating technology (such as heat pumps).
Low-carbon fuels
Gas pipelines can deliver low-carbon fuels (such as Renewable Natural Gas and hydrogen) and transport captured carbon, helping Ontario achieve its climate goals.
Energy security
Our network consists of over 151,000 kilometers of existing pipelines, connecting many Ontarians to a fuel that keeps them warm and businesses operating.
What our customers are saying
“We’ve saved all kinds of money by converting to natural gas. And we no longer have to worry about paying for propane tanks or getting them refilled.”
Phil Dewsnap, Homeowner, Fenelon Falls
Ways to show your support for natural gas as part of Ontario’s energy future
-
Reach out to your MPP and share your support of natural gas as part of Ontario’s energy future.
-
Look for opportunities to advocate for natural gas and gas infrastructure and its role in a measured approach to the energy transition.
-
Contact the Ontario Energy Board and let them know how access to reliable and affordable natural gas is important to you.
We are here to help
If you would like to learn more about the impacts of the OEB’s decision, please check out:
- Impacts of the OEB decision on Ontario builders and developers.
- Impacts of the OEB decision for Municipalities.
To learn more about natural gas in Ontario, check out:
How could this OEB decision affect me?
Our 2024 rate rebasing application was designed to provide our customers with safe and reliable natural gas at a reasonable cost, in addition to measured steps to help Ontario advance a practical transition to a sustainable energy future.
However, the OEB’s decision conveys a strong bias against natural gas and results in some decisions that makes natural gas less affordable and accessible, adding financial pressure onto Ontarians.
Enbridge Gas is in support of a balanced energy mix approach, one that includes both natural gas and electricity, to ensure Ontario can meet its emissions targets without sacrificing reliability or affordability.
The OEB’s decision reduced our capital budget of $300 million this year, putting billions at risk in the coming years.
Reduced capital for Enbridge Gas impacts Ontario’s planned and future growth and reinforcement projects needed to meet increased demand.
Enbridge Gas’ ability to connect new customers may be impacted as early as 2024.
Millions of Ontarians will feel the impact of the OEB’s decision in their everyday lives- the stakes are high.
Affordability: Costs associated to connecting natural gas to new homes and businesses will be required up front, increasing the cost of home ownership and new construction.
Growth: The OEB decision reduced Enbridge Gas’ capital budget, putting our ability to support growth and development projects across Ontario at risk. A significantly reduced capital budget means Enbridge Gas will continue to focus on sustaining safe and reliable operations for existing customers.
Access: Customer choice is imperative. Constraining access to natural gas through a reduction in capital will significantly limit the future development of essential energy infrastructure.
The 2023 Ontario Energy Board Rate Rebasing Decision has caused significant potential impacts for builders planning to connect to the natural gas system in the 2024 calendar year and beyond.
Builders and developers would be required to pay for the full cost of the system infrastructure including, mains, servicing and construction costs up front at the time of design. This could be years before a new home is built. The initial estimate is at least $6,000 per new home connection, which could potentially millions in upfront costs for builders and developers looking to attach a new home, small business or subdivision to natural gas.
In addition, the OEB decision did not provide evidence that alternative energy is available to support growth in Ontario. For builders and developers, this could limit the ability to construct in 2024 and beyond.
The OEB’s decision reduces our capital budget of $300 million this year and billions over the next five years. What that means is that our priority will be maintaining the safety and reliability of our existing system, which may impact our ability to support future infrastructure projects in Ontario.
Support for customer and community growth projects and development – greenhouses, grain dryers, industrial parks, and any new businesses or housing developments seeking natural gas - will be at risk.
