Frequently Asked Questions about Rate Changes

April 1, 2021

The Ontario Energy Board (OEB) has approved changes to the rates Enbridge Gas Inc. charges its customers effective April 1, 2021. These new rates remain in effect through June 30, 2021 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 Jan. 1, 2021, Enbridge Gas changed the rates our customers pay. Rate changes include:

Rate M2 Rate 10 Rate 6
  • An increase to the federal carbon charge,
  • Increases in the gas commodity and delivery rates,
  • Decreases in the gas price adjustment and delivery price adjustment rates, and
  • Price adjustments from prior periods
  • An increase to the federal carbon charge,
  • Increases in the gas commodity, transportation, storage, delivery and transportation price adjustment rates,
  • Decreases in the gas price adjustment and delivery price adjustment rates, and
  • Price adjustments from prior periods.
  • An increase to the federal carbon charge,
  • Increases in the gas supply charge and delivery rates,
  • Decreases in the transportation rate,
  • A cost adjustment refund, and
  • Rate adjustments from prior periods.

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. Delivery rates (and storage rates in the Union rate zones) are reviewed and approved by the OEB, which conducts an open review process with participation from consumer groups and Ontario municipalities.

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

What makes up the different charges on my bill?

Gas costs - Gas commodity costs include information on the “Gas Supply Charge” and “Gas Price Adjustment” or “Gas Cost Adjustment” lines on your bill, depending on your location. 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 rate zone, the cost of transportation to Ontario is included in the “Gas Supply Charge” and therefore there is no longer a separate Transportation to Enbridge line item on customer bills.

Transportation costs - Transportation costs include information on the “Transportation to Enbridge” and “Transportation Price Adjustment” lines on your bill, depending on your location. 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 Supply Charge” line on your bill.

Delivery costs - Delivery costs include the information on the “Delivery to You” and/or “Delivery Price Adjustment” lines on your bill, depending on your location, 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 (for Union rate zone customers) - Storage costs include the information on the “Storage Charge” and “Storage Price Adjustment” lines on your bill and reflect the cost of storing natural gas so it is available when you need it.

Customer Charge – The customer 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 7.83 cents per m3. This charge increases annually each April. All of the money collected for this charge goes to the federal government. Visit uniongas.com/carboncharge for more information.

Charges from Other Companies - Enbridge Gas provides a billing service to other companies that offer energy-related products and services. These companies are not owned by or affiliated with Enbridge Gas. If you decide to buy a product or service from a participating company, the charges will appear on the section of your bill called Charges From Other Companies. Enbridge Gas does not recommend, endorse or guarantee the products or services offered by such companies.

What is the federal carbon charge on my bill?

As part of the federal government's carbon pollution pricing program, a carbon charge applies to fossil fuels sold in Ontario, including natural gas. The current federal carbon charge for the natural gas you use is 7.83 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' 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.

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 costs for Enbridge Gas to buy gas supplies and transportation services from the market, vary by location. In addition, the costs to build and maintain a distribution pipeline system varies by the geographic location for several reasons including different soil conditions (e.g. rockier soil in the north), population density and the distance between homes/businesses and the need for and timing of infrastructure expansions and maintenance. These costs differences are reflected in the four geographically based rate zones.

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, storage or the customer charge, depending on your location.

All rate changes are approved by the OEB.

What are cost/price adjustments?

The rates we charge customers for natural gas and gas transportation services are based on a forecast of the prices we expect to pay to buy these items from the market. The actual market costs can differ from our forecasts and adjustments are made quarterly (Jan. 1, April 1, July 1 and Oct. 1) to either refund or collect the difference so that you only pay the actual costs for these services and nothing more. These costs are passed on to customers without any mark-up.

What is the temporary rate/temporary price adjustment?

The temporary rate/temporary price adjustment reflects the difference between the amount customers paid for energy conservation programs and the actual costs incurred.

  • EGD rate zone: This adjustment will appear on customers' April to June bills in three equal installments.
  • Union rate zones: For residential and small business customers (Rate 01, Rate 10, Rate M1 and Rate M2), this adjustment will appear on customers' April to September bills. For all other customers this adjustment will appear on customers’ April to June bills.

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 of approximately one month beginning and ending at approximately the same time in the 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 can customers do to keep their natural gas costs manageable?

Natural gas is the best value for your energy dollar at about half the cost of electricity, oil or propane. In addition, an abundant North American supply of natural gas is expected to keep prices comparatively low for years to come. Enbridge Gas is committed to helping homes and businesses manage their gas bills.

We understand that this is a challenging time for customers who may be facing unexpected financial challenges as a result of COVID-19. The COVID-19 Energy Assistance Program (CEAP)can help. CEAP provides a one-time payment of up to $750 to qualifying residential customers and up to $1,500 to qualifying small business or registered charity customers to help pay down energy bill debt incurred since COVID-19 began.

Enbridge Gas also offers enhanced payment plans for customers who have concerns about their ability to pay their utility bill which will allow them to make smaller payments over time until the amount owing is repaid, and late fees will be waived during the repayment period. More information is available at enbridgegas.com/covid19.

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.