Natural gas rates

Find out about natural gas rates for supply, and why they vary throughout the year.
Rates and your bill

As part of our mandate, we set the rates for the gas you use for your home or business if you're a customer of Enbridge Gas, Union Gas and EPCOR Natural Gas Limited Partnership. We also approve the rates these utilities charge to deliver natural gas to you. We do not set rates for Kitchener Utilities or Utilities Kingston.

We also do not regulate the prices that natural gas marketers charge in their contracts. Or what companies charge to rent, repair or maintain water heaters.

See a description of all of the charges that appear on your natural gas bill

Current gas rates for supply

January 1, 2020 natural gas rates (view detailed rates below)  
Union Gas (South) * 13.4040 ¢/m3
Enbridge Gas 10.1841 ¢/m3
EPCOR Natural Gas Limited Partnership ** 14.2423 ¢/m3
* The rate for Union South includes transportation charges. 
** The rate for EPCOR includes storage and transportation charges.
To see how these natural gas rates relate to your overall bill, visit our natural gas bill calculator.


View past natural gas rates

How often does the Ontario Energy Board set new rates?

We set rates for the natural gas that you use (supply) 4 times a year.

Natural gas is a commodity that is traded on North American markets. Market prices rise and fall based on current supply and demand. Major weather events can also affect the market price.

We don’t allow utilities in Ontario to earn a profit on the sale of gas. They must pass through to you the price they pay to buy natural gas on the open market, with no markup.

Every 3 months, natural gas utilities ask us to adjust their supply rates to cover:

  • Future costs. Utilities estimate how much gas they expect their customers to use, based on previous years. Then they estimate the market price for natural gas over the next 12-month period.
  • Past costs. Utilities also review the difference between what they previously forecast their customers would pay and what their customers actually paid. This may be called the Gas Price Adjustment or Cost Adjustment on your bill. It can increase or lower the rate accordingly. For example, if a utility collected more from customers than it paid for gas in the past, the difference is credited back to customers through a lower rate. Likewise, if not enough was collected by the utility, the rate will be higher.

Because forecasting is done so far in advance of when utilities actually purchase natural gas, it is never exact. We adjust supply rates periodically throughout the year so there’s less likelihood you or the utility will owe a large amount at a given time.

Have your say about gas delivery rates

Visit the current applications page to find out if your utility has applied to change your delivery rates. If so, you can:

  • See what they’re asking for and why, and provide your comments online.
  • Find out when upcoming community meetings and hearings are being held so that you can attend.
  • See documents related to the case.

How are rates affected by a change in the seasons?

Time of year is another factor affecting costs. Because natural gas is a main source of heating in North America, it is usually more expensive in the winter months. Most utilities buy what they think they’ll need, based on forecasts, during the summer when the price is cheaper. Then they store the supply until winter and deliver it when you need it to heat your home or business.

If the weather isn’t exactly as predicted, it can have a significant impact on your rates. For example, if the winter is colder or longer than expected, the utility may have to buy extra supply, likely at a higher cost. Because the utility passes on the actual cost of gas, this extra cost will need to be collected from customers. Similarly, if the price is lower than forecast, this would result in a credit to customers.

Natural gas rates effective January 1, 2020

Each utility has different supply rates. Delivery rates also vary based on several factors, including their operating costs. This chart shows supply rates for each of the 3 natural gas utilities whose rates we set.

January 1, 2020 natural gas rates

The OEB approved Enbridge Gas Inc.’s rates for the Union rate zones for January 1.

Natural gas rates are based on a forward looking forecast for the next 12 months. Forecasts are never perfect, so the billed price is normally either higher or lower than the actual market price. The difference is tracked and passed on to consumers as a credit or a charge in subsequent quarterly rate adjustment applications.

Effective January 1, 2020, the Gas Supply Charge (including gas supply cost quarterly adjustment) for the Union rate zones are:

Rate Zone

Natural Gas Price ¢/m3

Gas Price Adjustment ¢/m3

Effective Price ¢/m3

South Rate M1* 11.7312 1.6728 13.4040
North East Rate 01** 12.0136 1.9403 13.9539
North West Rate 01 10.0062 -0.6648 9.3414
* The commodity rates for Union South include all of the transportation costs. 
** The commodity rates for Union North East include a portion of the transportation costs.

 

In the South Zone, there has been an increase in the forecast price of natural gas, an increase in transportation costs, partially offset by a decrease in the adjustments for differences in past forecast gas prices and delivery relative to actual costs. Residential customers in this service area will see an overall increase to their annual bills.

In the North East Zone, there has been an increase in the forecast price of natural gas, partially offset by a decrease in the adjustment for differences in past forecast gas prices relative to actual costs. Residential customers in this service area will see an overall increase to their annual bills.

In the North West Zone, there has been an increase in the forecast price of natural gas and a decrease in the adjustment for differences in past forecast gas prices relative to actual costs that are partially offset by an increases in the transportation adjustment. Residential customers in this service area will see an overall increase to their annual bills.

The annual bill impacts for an average residential customers who purchases gas from Enbridge (using 2,200 m3/year) are:

Rate Zone

Annual Bill Change without Temporary Adjustments

Union South $5.64
Union North East $19.55
Union North West $18.31

Union Residential Rates (per month) effective January 1, 2020 (pdf)

January 1, 2020 natural gas rates

The OEB approved Enbridge Gas Inc.’s rates for the Enbridge Gas Distribution (EGD) rate zone for January 1.

Effective January 1, 2020, the Gas Supply Charge (including gas supply cost quarterly adjustment) for the EGD rate zone = 10.1841¢ per m3

Natural gas rates are based on a forward looking forecast for the next 12 months. Forecasts are never perfect, so the billed price is normally either higher or lower than the actual market price. The difference is tracked in a special account and is adjusted with a credit or a charge in subsequent quarterly rate adjustment applications.

Natural Gas Price ¢/m3

Gas Cost Adjustment ¢/m3

Effective Price ¢/m3

9.3487 0.8354 10.1841

Annual Bill Impact for an Average Residential Consumer (using 2,400 m3/year) = $8.12

Enbridge Residential Rates (per month) effective January 1, 2020 (pdf)

January 1, 2020 natural gas rates

ENGLP applied to the OEB to change the prices it will charge customers effective January 1, 2020.

The OEB approved the following commodity rates effective January 1, 2020.

  • Gas Commodity Charge (including quarterly adjustment) = 14.2423¢/m3
  • Delivery to You Charge (for the first 1,000 m3) = 13.3814¢/m3
  • Monthly Fixed Charge = $17.50/month

Annual Commodity Rate Impact for an Average Consumer (using 2,009.4 m3/year) = -$13.19

Annual Delivery to You Charge impact for an Average Consumer (using 2,009.4 m3/year) = -$51.53

Annual Monthly Fixed Charged impact for an Average Consumer = $12.00

Annual Bill impact for an Average Customer excluding temporary rate adjustments = -$52.72

The main reason for the commodity rate change is a decrease to the forecast price ENGLP expects to pay for natural gas over the next 12-month period. Changes in the Delivery to You Charge and the Monthly Fixed Charge are a result of ENGLP’s Decision and Rate Order issued on October 24, 2019, which comes into effect on January 1, 2020.

Note: Natural gas rates are based on a forward looking forecast for the next 12 months. Forecasts are never perfect, so the billed price is normally either higher or lower than the actual market price. The difference is tracked and passed on to consumers as a credit or a charge in subsequent quarterly rate adjustment applications.

Total Annual Bill Impact for an Average Customer including temporary rate adjustments = -$56.22

EPCOR Residential Rates (per month) effective January 1, 2020 (pdf)

Calculate your natural gas bill

Utilities deliver natural gas to your home or business and they also issue your bills. Use our calculator to estimate your monthly natural gas bill. You can also compare your current bill with a contract offer from a natural gas marketer.

Use our bill calculator now