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Cap and Trade

In January, 2017, the provincial government introduced a cap-and-trade program which caps the amount of greenhouse gas emissions that Ontario homes and businesses are allowed to emit, and lowers that limit over time.

Under this legislation, Union Gas must buy carbon units (also known as emission allowances or credits) for the natural gas used by its residential and business customers, as applicable, and the costs are added to the Delivery line on the bill.  In 2017, the cost was 3.3 cents per cubic metre of natural gas used or about $70-$80 a year for an average residential customer.

The price of carbon units varies with supply and demand, and can change over time. Union Gas has applied to the Ontario Energy Board (OEB) for approval to recover costs associated with our 2018 cap-and-trade compliance plans in our natural gas distribution rates. If approved, this means an increase in cap-and- trade costs to 3.6 cents per cubic metre of natural gas used, or an additional $4-$5 a year starting January 1, 2018 for an average residential customer.

The OEB will hold a public review of our proposed 2018 cap-and- trade compliance plan. If you would like to learn more, or participate in the proceeding, you can follow the instructions in the OEB’s Notice of Hearing: Notice of Cap-and-Trade Compliance Plan English; Notice of Cap-and-Trade Compliance Plan, French.

Frequently Asked Questions

Why is Union Gas increasing distribution rates?

Under the provincial government's cap-and-trade program Union Gas is required to buy carbon units for the natural gas used by its residential and business customers. Union Gas is proposing an increase in distribution rates to reflect an increase in the cost to buy carbon units in 2018.

How much will my bill increase?

If approved, the change in cap-and-trade costs represents an increase of about $4-$5 a year starting January 1, 2018 for an average residential customer. The total added cost to your bill will depend on how much gas you use.

How can I calculate my cap-and-trade costs?

To calculate the approximate cap-and-trade cost included on your bill using our simple calculator, or to learn more about the government’s cap-and-trade program and how you can reduce these costs for your home or business, please visit uniongas.com/capandtrade.

How can I reduce my energy costs?

Union Gas is committed to helping manage energy efficiency and costs through energy-savings advice, incentives and rebates. More information is available at: