Cap and Trade - Residential
How much does cap and trade cost?
Estimate the cost of cap and trade
Under Ontario's cap-and-trade program, which began Jan. 1, 2017, Union Gas is required to buy carbon units for the natural gas you use when doing such things as heating your home and water, cooking your food or drying your clothes. This cost is included in the Delivery charge on your natural gas bill.
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 on this page.
Union Gas has applied to the Ontario Energy Board (OEB) for an increase in delivery rates to reflect an increase in the cost to buy carbon units in 2018. 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 starting Jan. 1, 2018 for a typical residential customer.
We expect the cost could continue to increase over the long term as the cap on greenhouse gas (GHG) emissions is lowered. The Ontario Energy Board will review and approve all cap-and-trade costs before they are included on your bill.
The cap-and-trade cost is included in the Delivery charge on your natural gas bill.
If the price of carbon units changes, the charge on your bill will be adjusted accordingly. You pay what Union Gas pays - no more, no less.
How can you reduce the cost of cap and trade?
Because the cap-and-trade cost is charged for each cubic metre of natural gas you use, the impact of cap and trade on your bill depends on the total amount of natural gas used. If you use less, you will pay less. Union Gas offers energy saving programs and incentives and helpful tips to help you manage energy efficiency while reducing your overall energy and cap-and-trade costs.
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If you're an Equal Billing Plan customer, your payments are established each September, based on a forecast of your natural gas use for the year ahead and gas prices for the same period. Union Gas reviews your account periodically to ensure your payment is set at the correct level. If it is not, we adjust it up or down to reflect the most recent information.
Under the Ontario government's cap-and-trade program, Union Gas must buy carbon units for the natural gas used by applicable residential and business customers, regardless of whether they buy their gas from Union Gas or an energy marketer. For the typical Ontario household, the annual cost is approximately $70 to $80.
For more information, please visit the Ontario government's cap-and-trade website at ontario.ca/capandtrade or go to:
The everyday benefits of natural gas
Natural gas delivers benefits that go far beyond heating your home. You may not realize how many of the everyday advantages you take for granted wouldn't be possible without Ontario's most affordable energy.
Natural gas costs less today than it did 10 years ago and massive deposits, newly discovered right here in North America, ensure that it will continue to be your most affordable energy source for many years to come. Using natural gas instead of electricity, oil or propane to heat your home and water saves you up to $2,500 a year.
Access to reliable and affordable energy allows businesses to thrive in a highly competitive environment. The natural gas industry supports hundreds of thousands of direct and indirect jobs, across the country and in your own community.
Natural gas is by far the cleanest burning conventional fuel, cutting greenhouse gas emissions by 25 per cent versus diesel and oil. It’s also a crucial low-emission partner to intermittent renewable energy sources like wind and solar, able to generate up to 30 per cent of Ontario’s electricity when the wind isn’t blowing and the sun isn’t shining.
Composed of hydrocarbons, an essential component in plastics, natural gas is needed to make over 6,000 household products, from sippy cups and running shoes to toothbrushes, tires and trash bags. Life wouldn’t be the same without natural gas.