Cap and trade has begun
Cap-and-trade costs are included on your bill
- The Ontario government's cap-and-trade program took effect on Jan. 1, 2017.
- Under this new legislation, Union Gas must buy emission allowances for the natural gas you use to heat your home and water, and cook your food. These costs will be recovered on your bill.
- The cost of cap and trade depends on how much gas you use. For the average Ontario household, the additional annual cost will be about $70 to $80* in 2017.
- This cost is now included in the Delivery charge on your natural gas bill.
- You can estimate the approximate cost of cap and trade on your bill by using the calculator found at uniongas.com/capandtrade.
- If the price of emission allowances changes, the charge on your bill will be adjusted accordingly.
- The Ontario Energy Board (OEB) approves cap-and-trade costs before they are included on your bill.
- The Ontario government will use funds generated by the program to support their Climate Change Action Plan (CCAP).
Natural gas costs less today than 10 years ago and, thanks to abundant supply right here in North America, it will continue to be your most affordable energy for 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.
Please visit uniongas.com/capandtrade to learn more about Ontario’s cap-and-trade program.
*Based on typical household use of 2,200 cubic metres (m3) of natural gas/year and an expected emission allowance cost of 3.3 cents/m3.
Union Gas rate and rate zone changes
North American natural gas markets are changing, with increasing production in areas closer to Ontario, and decreasing production in Western Canada. Union Gas is purchasing more gas located closer to Ontario and less from Western Canada. The Ontario Energy Board (OEB) has approved rates and rate zone changes, which took effect Jan. 1, 2017, to better reflect the costs of buying and transporting natural gas to our customers.
Rates and rate zones vary depending on where you live. Union Gas customers now fall into three rate zones: North East, North West or South. Your zone is indicated on the January 2017 rate insert included with this month’s bill.
What you need to know:
- Union Gas buys natural gas from North American markets and pays other pipeline companies to transport it to our distribution system in Ontario from where it’s produced.
- Union Gas doesn’t charge a mark-up on natural gas or transportation costs – you pay what we pay.
- As always, the OEB reviews and approves all gas rates before they take effect, ensuring that the cost to you is fair and reasonable.
For more information, please go to uniongas.com/residentialrates.