Enbridge Gas Inc. Receives Ontario Energy Board Approval for Rate Changes Effective Aug. 1, 2019

Information for our Energy Marketer Customers

On July 4, 2019, Enbridge Gas received approval from the Ontario Energy Board (OEB) for rate changes effective Aug. 1, 2019. The rate changes were proposed to the OEB as part of Enbridge Gas' Federal Carbon Pricing Program (FCPP) Application to include charges associated with the Government of Canada's carbon pollution pricing program and were approved as filed (EB-2018-0205).

This federal carbon pollution pricing program is comprised of two components:

  1. Beginning Jan. 1, 2019: An output-based pricing system (OBPS) for industrial facilities producing greenhouse gas (GHG) emissions above a certain threshold; and
  2. Beginning Apr. 1, 2019: A federal carbon charge applied to fossil fuels (including natural gas).

The federal carbon charge is included on customers' bills effective Aug. 1, 2019, with the exception of customer facilities that have an exemption certificate issued by the federal government. The federal carbon charge will show on the bill as a separate line item if applicable. Eligible participants under the Greenhouse Gas Pollution Pricing Act (GGPPA) may be required or permitted to register with the federal government in order to receive full or partial exemption from the federal carbon charge.

Greenhouse operators: On July 9, 2019, the federal government released final regulations amending the Fuel Charge Regulations under the GGPPA. Partial relief of the federal carbon charge has been confirmed to apply to natural gas that is exclusively used in the operation of certain commercial greenhouses. In other words, greenhouse operators may be provided relief upfront through the use of an exemption certificate, such that only 20 per cent of the federal carbon charge will apply to natural gas delivered by a registered distributor to an eligible greenhouse operator. More information can be found on our federal carbon charge page for business.

Federal Carbon Pricing Program Rates

Federal carbon charge

3.91 cents/m3

Facility carbon charge

(Union Gas Rate Zones)

0.0084 cents/m3

Facility carbon charge

(EGD Rate Zone)

0.0036 cents/m3

All of the money that we collect for the federal carbon charge goes to the federal government.

The federal carbon charge rate (if applicable) is 3.91 cents per cubic metre (m3) of natural gas used. This charge will increase annually each April. The total cost is determined by how much gas is used.

There is also a facility carbon charge of 0.0084 cents per cubic metre (Union Gas Rate Zones) / 0.0036 cents per cubic metre (EGD Rate Zone) included in the delivery or transportation charge on customer bills. This charge is associated with the costs of the FCPP to operate Enbridge Gas's facilities.

The federal carbon charge went into effect in Ontario on April 1, 2019 and Enbridge Gas has been incurring these costs on customers' behalf since that time. On July 4, 2019 we received approval from the OEB to include the federal carbon charge on our bill effective Aug. 1, 2019. We have tracked these incurred costs in approved deferral and variance accounts and will seek to recover them from customers at a later date, subject to OEB approval.

The Government of Canada has introduced the Climate Action Incentive Fund (CAIF) for small-medium enterprises, municipalities, universities, schools, hospitals, and not-for-profit organizations. Eligible recipients may access funding for projects to decrease energy usage, save money, and reduce carbon pollution.

Enbridge Gas offers energy efficiency tips and programs that may help customers reduce their natural gas use and the amount of the federal carbon charge cost on their bill. Customers can contact their Enbridge Gas energy conservation advisor to learn more.

You can find more information about these changes on our federal carbon charge pages.

If you have any questions about this edition of Factsline, please contact Rob DiMaria or Patrick Boyer.