Cap and Trade

The Ontario Government's Cap-And-Trade Program Began Jan. 1, 2017.  Find out how cap and trade will affect your natural gas bill and what you can do to reduce the cost.

Cap and trade is here

The provincial government introduced a cap-and-trade program beginning Jan. 1, 2017. The plan caps the amount of greenhouse gas (GHG) emissions that Ontario homes and businesses are allowed to emit, and lowers that limit over time. Funds generated by the cap-and-trade program will be used to support the Ontario government's Climate Change Action Plan (CCAP) to promote low-carbon energy solutions.

Under this new legislation, Union Gas must buy emission allowances for the natural gas used by its residential and business customers, as applicable. These costs are recovered on your natural gas bill. 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

Key facts about cap and trade

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Will add about 3.3 cents per cubic metre of gas to your natural gas bill in 2017

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Will add about $70-$80 to the average residential customer's annual natural gas bill in 2017

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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 additional 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: cubic metres

The price of GHG emission allowances will vary with supply and demand, and can change over time. The cap-and-trade cost is expected to be about 3.3 cents per cubic metre (m3) of natural gas used in 2017. 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 added to the Delivery charge on your bill. If the price of emission allowances changes, the charge on your bill will be adjusted accordingly, just as it is for other annual rate adjustments. You pay what Union Gas pays - no more, no less. The Ontario Energy Board will review and approve all cap-and-trade costs before they are included on your bill.

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

Gas Bill Cap and Trade ×