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 Natural Resource Gas. 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

April 1, 2017 natural gas rates

 
Union Gas Limited (South) * 17.4434 ¢/m³
Enbridge Gas Distribution Inc. 10.9745 ¢/m³
Natural Resource Gas Limited ** 17.9472 ¢/m³
* The rate for Union South includes transportation charges. 
** The rate for NRG 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.

Do rates vary between utilities?

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.

April 1, 2017 natural gas rates

Annual Rate Impact for an Average System Supply Consumer (using 2,200m3/year):

Service Area

Total Annual Increase/Decrease*

South $20.20 
North West $50.30
North East $40.76
* Does not include temporary charges or credits
 

In the North West Zone there has been an increase to the price for natural gas, Gas Price Adjustment, transportation costs, and storage costs. This increase is offset to some extent by a decrease in the Transportation Price Adjustment.  Customers in the North West Zone will see an overall increase to their annual bills.

In the North East Zone, there has been an increase to the Gas Price Adjustment, transportation costs and storage costs. This increase is offset to some extent by a decrease in the commodity costs and Transportation Price Adjustment.  Customers in the North East Zone will see an overall increase to their annual bills.

In the Southern Zone, there has been a decrease to the price for natural gas and an increase in the Gas Price Adjustment. Customers in this service area will see an overall increase to their annual bills.

The biggest driver to the overall increase in customer bills relates to the expiry of certain rate riders that were a credit to ratepayers.

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 QRAM applications.

Natural Gas Prices:

Rate Zone

Natural Gas Price ¢/m3

Gas Price Adjustment ¢/m3

Effective Price ¢/m3

North West 12.4439 -0.1838 12.2601
North East * 16.1402 -0.1315 16.0087
South ** 15.8578 1.5856 17.4434
* The commodity rates for Union North East include a portion of the transportation costs. 
** The commodity rates for Union South include all of the transportation costs.
 

Union Residential Rates (per month) effective April 1, 2017 (pdf)

 

April 1, 2017 natural gas rates

The OEB approved Enbridge’s rates for April 1. Effective April 1, 2017, the Gas Supply Charge (including gas supply cost quarterly adjustment) = 10.9745¢ per m3

Annual Rate Impact for an Average Consumer (using 2,400 m3/year) = $8

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 QRAM applications.

Natural Gas Price ¢/m3

Gas Cost Adjustment ¢/m3

Effective Price ¢/m3

11.3759 -0.4014 10.9745

Enbridge Residential Rates (per month) effective April 1, 2017 (pdf)

 

April 1, 2017 natural gas rates

The OEB approved the following commodity rates effective April 1, 2017. 

Gas Supply Charge (including quarterly adjustment) = 17.9472 ¢/m3

Annual Commodity Rate Impact for an Average Consumer (using 2,009 m3/year) = $9.79

The main reason for the rate change is an increase to the forecast price NRG expects to pay for natural gas over the next 12 months.

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 adjusted with a credit or a charge in subsequent QRAM applications.

Total Annual Bill impact for an Average Customer = $9.79

NRG Residential Rates (per month) effective April 1, 2017 (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