Cap and Trade

Cap and Trade - Find out how cap and trade affects your natural gas bill and what you can do to reduce the cost

What is cap and trade?

The provincial government's cap-and-trade program began on Jan. 1, 2017. This program places a cost on greenhouse gas (GHG) emissions that Ontario homes and businesses emit. GHG emissions are produced when natural gas and other fossil fuels are burned – for example when you use your natural gas furnace, water heater, or stove.

The cap-and-trade program caps the amount of GHG emissions that Ontario homes and businesses are allowed to emit as a whole, and lowers that limit over time. Union Gas is required to buy carbon units (also known as emission allowances or credits) for the natural gas used by its residential and business customers, as applicable. These costs are included in the Delivery charge on your natural gas bill. Funds raised by the cap-and-trade program are being used to support programs outlined in the Climate Change Action Plan (CCAP) - which supports low-carbon energy solutions.

As the program evolves, we'll keep you informed of changes related to cap and trade and your bill here. For more information on the government's program, please visit ontario.ca/capandtrade.


Key facts about cap and trade

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Currently adds about 3.3 cents per cubic metre of gas to your natural gas bill

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Adds about $70-$80 to the typical residential customer's annual natural gas bill

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Natural gas is still the lowest-cost energy source

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Save up to $2,500/year by heating your home and water with natural gas vs. electricity, oil or propane

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The cap-and-trade cost is included in the Delivery charge on your natural gas bill

How much does cap and trade cost?

Estimate the cost of cap and trade

Example: xxx.xxx cubic metres
 

The price of carbon units will vary with supply and demand, and can change over time. Currently, the cap-and-trade cost on your bill is about 3.3 cents per cubic metre (m3) of natural gas you use. This amounts to about $73 annually for a typical household (based on a customer using 2,200 m3 of natural gas a year and a carbon unit cost of 3.3 cents per m3). The total cost will depend on how much gas you use. To estimate the approximate cost of cap and trade on your bill, use the calculator found here.

The cap-and-trade cost is included in the Delivery charge on your bill. Union Gas has applied to the Ontario Energy Board (OEB) for an increase in delivery rates as outlined in its 2018 Cap-and-Trade Compliance Plan, filed with the OEB on Nov. 9, 2017. This application is currently under review. If approved, this means an increase in cap-and-trade costs to 3.6 cents per cubic metre of natural gas used, or about an additional $5 annually for a typical residential customer, effective Jan. 1, 2018.

As always, the Ontario Energy Board reviews and approves cap-and-trade costs before they are included on your bill. You pay what Union Gas pays - no more, no less.

Learn more about how cap and trade affects you as a
natural gas customer

Gas Bill Cap and Trade ×