Frequently Asked Questions about Rate Changes

April 1, 2020

The Ontario Energy Board (OEB) has approved changes to the rates Enbridge Gas Inc. charges its customers effective Apr. 1, 2020. These new rates remain in effect through Jun. 30, 2020 and incorporate applicable temporary charges and credits.

Please visit our myaccount business rates section to view the rates specific to you and your location.

Are my rates changing?

Yes. On Apr. 1, 2020, Enbridge Gas changed the rates our customers pay. Rate changes include:

Rate M2

Rate 10

  • Decreases in the gas commodity, delivery price adjustment and delivery rates
  • An increase in the gas price adjustment,
  • Price adjustments from prior periods, and,
  • an increase in the Federal Carbon Charge for 2020.
  • Decreases in the gas commodity, transportation, transportation price adjustment, storage, delivery and delivery price adjustment rates
  • Changes in the gas price adjustment rate depending where you are located
  • Price adjustments from prior periods, and,
  • an increase in the Federal Carbon Charge for 2020.

Please visit our myaccount business rates section to view the rates specific to you and your location.

Enbridge Gas buys natural gas and gas transportation services for our customers from the market and we pass these costs to you without mark-up. Storage and delivery rates are reviewed and approved by the OEB, which conducts an open review process with participation from consumer groups and Ontario municipalities.

What makes up the different charges on my bill?

Gas costs - Gas commodity costs include information on the "Gas used" and "Gas price adjustment" lines on your bill. The net natural gas rate reflects what we expect to pay for gas supplies during the next year, as well as an adjustment to make up the difference between our forecast cost of gas and actual costs from prior periods. Also, in the Union South zone, the cost of transportation to Ontario is included in the "Gas used" charge and therefore there is no longer a separate Transportation to Union Gas line item on customer bills.

Transportation costs - Transportation costs include information on the "Transportation to Union Gas" and "Transportation price adjustment" lines on your bill. Natural gas is transported into Ontario from a variety of locations across North America using different pipelines for delivery across the province, so your transportation costs vary and depend on where you are located in the province. For customers in the Union South zone, the transportation cost is included in the "Gas used" line on your bill.

Delivery costs - Delivery costs include the information on the "Delivery" and "Delivery price adjustment" lines on your bill and reflect the cost of delivering natural gas to your business as well as an adjustment to make up the difference between our forecast and actual delivery rates from prior periods. This charge also includes a facility carbon charge associated with the operation of Enbridge Gas' facilities to deliver natural gas to you.

Storage costs - Storage costs include the information on the "Storage" and "Storage price adjustment" lines on your bill and reflect the cost of storing natural gas so it is available when you need it.

Monthly Charge – The fixed monthly charge partially covers the cost of maintaining a safe and reliable natural gas distribution system. It includes things like meter reading, customer services and 24-hour emergency response.

Federal Carbon Charge – The federal carbon charge is 5.87 cents per m3. This charge increases annually each April. All of the money collected for this charge goes to the federal government.

Why does Enbridge Gas change the rates customers pay for natural gas?

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 mark-up. 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.

Why do costs differ for different parts of the province?

Different areas of the province are served by a different mix of natural gas transportation pipelines and gas supply sources, and as such, the cost to purchase gas supplies and the services to transport the supplies into our distribution system in Ontario from the market for our customers, varies by location.

How often does Enbridge Gas change its rates?

You'll see two general 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. This is shown as a change in the gas commodity and transportation rates on your bill and may also appear as a small change in delivery rates as Enbridge Gas also uses natural gas to power our delivery system. These changes, which are passed through to you without mark-up, 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. On your bill, this may appear as a change in the delivery and storage rates or the monthly charge.

All rate changes are approved by the OEB.

Now that Union Gas and Enbridge Gas Distribution have amalgamated, do I need to make any change to who or how I pay?

If you pay online or through telephone banking, you will need to select "Enbridge (Union Gas)" as the payee and remove "Union Gas". You will need to re-enter your 14-digit account number when you do this, so be sure to have your bill handy. The account number is on the top right-hand corner of the bill.

Payments made by cheque should be payable to Enbridge Gas. Our address has not changed. Please continue to remit your payments to the address on your bill.

All customers will see "Enbridge Gas Inc." associated with their payments.

Visit our payment options page for more information about the new bill payment process.

I pay online though telephone banking and I didn’t update my payee name from Union Gas to Enbridge. Will my payment be applied to the right account?

A process is in place to ensure payments are directed to the correct payee if a payment is remitted using the former utility name. It is best to update your account number as soon as possible.

I am on automatic withdrawal. Do I need to make any changes to my payments?

There are no changes required for payments made by automatic withdrawal. You will see our new name, "Enbridge Gas Inc." associated with your payments.

What are price adjustments?

Price adjustments refund or collect the difference between our forecast costs and actual costs from prior periods. The price Enbridge Gas charges you for natural gas is based on a forecast of what the market price of gas will be during the next 12 months. This forecast is updated and approved by the OEB every three months to reflect changes in the market price of gas. Enbridge Gas does not earn a profit on the sale of gas, so we track the difference between the price we charge for gas based on this forecast and the actual cost for gas we purchase during the same period. When forecast costs differ from actual costs, Enbridge Gas applies a price adjustment to refund or collect the difference. This way, we can ensure that customers pay for the actual cost of gas, and not a penny more.

I noticed the same line twice on my bill. Am I being billed twice?

No, the billing period doesn't begin and end on the first and last days of each month but covers a period somewhere mid-month to mid-month. Natural gas consumption for the period prior to a rate change is billed at the old rate and gas consumption after a rate change is billed at the new rate. The number of days at each rate depends on the monthly billing cycle of your account.

How does this rate change impact customers who buy natural gas from an energy marketer?

If you buy natural gas and/or transportation services from an energy marketer, the price you pay for your gas supplies depends on the terms of the contract and is excluded from this rate change. If you have questions about their charges, please contact them directly at the number found on your bill. For other services purchased from Enbridge Gas (natural gas transportation, storage and delivery), rate changes depend on your location.

What is the federal carbon charge on my bill?

As part of the federal government's carbon pollution pricing program, a carbon charge now applies to fossil fuels sold in Ontario, including natural gas. The current federal carbon charge for the natural gas you use is 5.87 cents per cubic metre (m3), increasing annually each April. This excludes facilities that are registered in the output-based pricing system and hold an exemption certificate issued by the federal government.

There is also a facility carbon charge included in the delivery or transportation charge on your bill. This charge is associated with the costs to operate Enbridge Gas's facilities.

All of the money that we collect for the federal carbon charge goes to the federal government. Learn more about the federal carbon pollution pricing program from the Government of Canada.

What can customers do to keep their natural gas costs manageable?

While customers can't control the weather, they can take additional steps to reduce their monthly bills.

Conservation is one of the best long-term ways to reduce energy costs. We understand that to stay competitive you need to closely monitor your ongoing energy use, invest in energy efficiency, and take advantage of valuable rebates and incentives. Enbridge Gas provides a range of tools and education to give consumers and businesses the power to take control and manage their energy use. For more information visit: enbridgesmartsavings.com.