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Natural Gas Rate Updates



Natural gas utilities apply for a quarterly rate adjustment (QRAM) to reflect the difference between the forecasted price for natural gas in the next 12 months and how much it actually costs. In Ontario, utilities pass the cost to purchase the gas on to consumers, with no markup.

These quarterly adjustments reduce the risk of large, one-time payments or rebates.

Supply disruptions caused by unforeseen events, such as severe or abnormal weather can impact the market price of natural gas.

Rate adjustments are  implemented January 1, April 1, July 1 and October 1, after the Board reviews the utility’s application.


Natural Gas Rates at a Glance

July 1, 2014 Natural Gas Rates

Union Gas Limited 22.5862 ¢/m3
Enbridge Gas Distribution Inc. 18.5187 ¢/m3
Natural Resource Gas Limited 32.5156 ¢/m3
The rate for NRG includes storage and transportation charges.

To see how these natural gas rates relate to your overall bill, visit our Natural Gas Bill Calculator.

View prior Natural Gas Rate Adjustments


OEB's Roles in Natural Gas Rates

In natural gas, the OEB sets rates for:

  • the distribution, transmission, and storage of natural gas;
  • the commodity price for natural gas;

The OEB does not regulate prices charged for competitive services such as:

  • contracts offered by natural gas marketers;
  • water heater rentals; and
  • repair or maintenance services for water heater rentals.

These products and services are available from a number of companies competing for your business.


Rate Adjustments

Union Gas Limited

July 1, 2014 Rates

Gas Supply Charge (including Gas Commodity Price Adjustment)  

Rate Zone

Price ¢/m3

Fort Frances 19.6175
Northwestern 19.6878
Northern 19.8289
Eastern 19.9422
Southern 22.5862

Gas Supply Charge (Detailed)

Rate Zone

Natural Gas Price ¢/m3

Gas Price Adjustment ¢/m3

Effective Price ¢/m3

Fort Frances 17.6045 2.013 19.6175
Northwestern 17.6748 2.013 19.6878
Northern 17.8159 2.013 19.8289
Eastern 17.9292 2.013 19.9422
Southern 17.9195 4.6667 22.5862


Enbridge Gas Distribution Inc.

July 1, 2014 Natural Gas Rate Changes

The OEB approved Enbridge’s rates for July 1 after approving the utility’s April 1 rates on an interim basis. Because of the significant impact of those interim rates, the Board decided to consider additional measures to smooth the bill impact associated with the difference between the forecast and actual cost of gas this past winter. Starting July 1, typical Enbridge customers will see a bill decrease, from the interim April 1st rates, of $12 a month as a result of the Board spreading out the impact over 27 months instead of 12.

Gas Supply Charge (including quarterly adjustment) = 18.5187 ¢/m3

Annual Rate Impact for an Average Consumer (using 3,064 m3/year) = -$144

Natural Gas Price ¢/m3

Gas Cost Adjustment ¢/m3

Effective Price ¢/m3

17.6031 0.9156 18.5187

Natural Resource Gas Limited

July 1, 2014 Rates

The Board approved the following rates on an interim basis and will be conducting a further review before announcing final rates.

Gas Supply Charge (including quarterly adjustment) = 32.5156 ¢/m3

Annual Rate Impact for an Average Consumer (using 2,009 m3/month) = $241 (increase)

The main reason for the rate change is an increase to the forecast price NRG expects to pay for natural gas over the next 12 months.

Note: Natural gas rates are based on a forward looking forecast for the next 12 months. Forecasts are never perfect, so the billed price is normally either higher or lower than the actual market price. The difference is tracked and adjusted with a credit or a charge in subsequent QRAM applications.




Page last updated 2014-06-27

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