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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

January 1, 2015 Natural Gas Rates

Union Gas Limited 18.9887 ¢/m3
Enbridge Gas Distribution Inc. 18.3160 ¢/m3
Natural Resource Gas Limited 23.7336 ¢/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

January 1, 2015 Rates

Annual Rate Impact for an Average System Supply Consumer (using 2,200m3/year):

Rate Zone

Total Annual Increase/Decrease

Fort Frances $63.65
Northwestern $43.34
Northern $42.97
Eastern $54.62
Southern $3.43

In the Fort Frances, Northwestern, and Northern areas, there has been a decrease in the price of natural gas and an increase in the gas price adjustment, the delivery costs, the transportation costs, the transportation price adjustment and the storage costs. Customers in these service areas will see an overall increase to their annual bills.

In the Eastern area, there has been an increase in the price of natural gas, the gas price adjustment, the delivery costs, the transportation costs, the transportation price adjustment and the storage costs.  Customers in this service area will see an overall increase to their annual bills.

In the Southern area there has been a decrease in storage costs and an increase in the price of natural gas, the gas price adjustment, transportation costs and delivery costs. Customers in this service area will see an overall increase to their annual bills.

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 in a special account and is adjusted with a credit or a charge in subsequent QRAM applications.

Natural Gas Prices:

Rate Zone

Natural Gas Price ¢/m3

Gas Price Adjustment ¢/m3

Effective Price ¢/m3

Fort Frances 14.7517 2.0724 16.8241
Northwestern 14.8346 2.0724 16.9070
Northern 14.9931 2.0724 17.0655
Eastern 15.1192 2.0724 17.1916
Southern 15.1064 3.8823 18.9887

 

Enbridge Gas Distribution Inc.

January 1, 2015 Natural Gas Rate Changes

The OEB approved Enbridge’s rates for January 1.  Starting January 1, typical Enbridge customers will see a bill increase, from the January 1 rates, of $63 a month.

Gas Supply Charge (including quarterly adjustment) = 18.3160 ¢/m3

Annual Rate Impact for an Average Consumer (using 2,400 m3/year) = $63

Natural Gas Price ¢/m3

Gas Cost Adjustment ¢/m3

Effective Price ¢/m3

14.7363 3.5797 18.3160

Natural Resource Gas Limited

January 1, 2015 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) = 23.7336 ¢/m3

Annual Rate Impact for an Average Consumer (using 2,009 m3/month) = -$50 (decrease)

The main reason for the rate change is a decrease 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 2014-12-19

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Ontario Coat of Arms ONTARIO ENERGY BOARD
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2300 Yonge Street
Toronto, Ontario, Canada
M4P 1E4

1-877-632-2727 (toll-free within Ontario)
416-314-2455 (within Greater Toronto Area or from outside Canada)
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