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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

October 1, 2014 Natural Gas Rates

Union Gas Limited 19.2103 ¢/m3
Enbridge Gas Distribution Inc. 17.6755 ¢/m3
Natural Resource Gas Limited 26.2277 ¢/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

October 1, 2014 Rates

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

Rate Zone

Total Annual Increase/Decrease

Fort Frances -$50.19
Northwestern -$50.02
Northern -$49.88
Eastern -$49.77
Southern -$79.50

The price for the gas and the cost to deliver it (within Union’s service territory) has decreased in the Fort Frances, Northwestern, Northern and Eastern service areas. However, the cost to transport the gas (primarily from western Canada) has increased. When these factors are taken all together, customers in these service areas will see an overall decrease to their annual bills. In the Southern Service Area, the price for gas and the cost to transport and deliver it has decreased. So, Southern customers will also see a decrease 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 14.7710 1.8734 16.6444
Northwestern 14.8477 1.8734 16.7211
Northern 14.9970 1.8734 16.8704
Eastern 15.1154 1.8734 16.9888
Southern 15.1033 4.1070 19.2103

 

Enbridge Gas Distribution Inc.

October 1, 2014 Natural Gas Rate Changes

The OEB approved Enbridge’s rates for October 1, 2014.  Starting August 1, typical Enbridge customers will see a bill decrease, from the July 1 rates, of $65 a month.

Gas Supply Charge (including quarterly adjustment) = 17.6755 ¢/m3

Annual Rate Impact for an Average Consumer (using 3,064 m3/year) = -$65 (decrease)

Natural Gas Price ¢/m3

Gas Cost Adjustment ¢/m3

Effective Price ¢/m3

14.6243 5.5393 17.6755

Natural Resource Gas Limited

October 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) = 26.2277 ¢/m3

Annual Rate Impact for an Average Consumer (using 2,009 m3/month) = -$126.35 (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 2014-11-20

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Ontario Coat of Arms ONTARIO ENERGY BOARD
P.O. Box 2319
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)
Fax: 416-440-7656

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