Price adjustments refund or collect the difference between forecasted costs and actual costs from a prior period. The price Union Gas charges customers for gas is a forecasted price. This forecast is updated and approved by the Ontario Energy Board quarterly to reflect changes in the market price of natural gas.
Because Union Gas is not allowed to earn a profit on the sale of gas, we track the difference between the price we charge our customers for gas based on this forecast and the actual cost of gas we purchase during the same period.
When forecasted costs differ from actual costs, Union Gas applies a price adjustment to the gas rate to refund or collect the difference. In this way we can ensure that the actual costs of gas is passed through to our customers and not a penny more.
These are not new or extra charges. In the past, price adjustments were blended into the gas, transportation storage and delivery to you rates.
No, these are not new or extra charges. In the past, price adjustments were included in rates. Each adjustment now appears as a separate line on the bill to provide our customers with a clearer picture of what the current rates are and what is being rebated or recovered from a prior period.
No. These are not new or extra charges. In the past, price adjustments were blended into the gas, transportation storage and delivery to you rates. The total amount paid would be the same whether expressed as a blended rate or as a rate plus the “price adjustment”.
Price adjustments do not apply to services provided by Retail Energy Marketers. To confirm the services you receive from your marketer, please review your contract.
The price Union Gas charges customers for gas is a forecasted price. This forecast is updated every three months in January, April, July and October following Ontario Energy Board approval to reflect ongoing changes in market prices.
No, Union Gas does not earn any profit from the sale of the natural gas commodity. We pass the cost of natural gas and the cost to transport that gas into our delivery area through to our customers without mark-up. The price we pay is the price our customers’ pay, and not a penny more.
As a distribution company we earn our income from the distribution and storage of natural gas. The rates we charge for these services are regulated by the Ontario Energy Board and have remained relatively stable for a number of years.
Natural gas is used to operate the transportation, storage and delivery systems. When the price of gas changes so does the cost of these services.