Your Natural Gas Bill
Explanation of Charges
Below is a sample natural gas bill. Descriptions for each line item are provided below.
Starting January 1, 2017, natural gas utilities regulated by the Ontario Energy Board will begin collecting a new Cap and Trade charge from customers. The Cap and Trade program was established by the Ontario government to address climate change and reduce greenhouse gas emissions in the province. The government put a limit on the amount of greenhouse gas pollutants, or emissions, that Ontario’s businesses, institutions and households will be allowed to produce each year. Because natural gas is a fossil fuel that emits greenhouse gases, utilities that operate the system - and people who use the natural gas - must also pay for their emissions. The charge will be based on how much natural gas you use, encouraging customers to conserve in order to save energy and money. Contact your utility for more information about how the program will work for its customers.
If you have a contract with an energy retailer or are thinking about signing with one, your bill might look a little different. Click here to see how.
A fixed charge for services to administer your natural gas account.
You will be charged this cost even if you don’t consume any natural gas during a billing period. The charge covers expenses to administer natural gas accounts including meter reading, customer services, equipment maintenance, and emergency response services. The Board approves the Customer Charge annually.
Comprised of the costs to transport, store and distribute natural gas:
- Transportation: the cost to transport natural gas from Western Canada and the United States to Ontario. The National Energy Board approves the Transportation tolls and charge.
- Delivery: The cost to deliver natural gas through the utility's distribution system in Ontario to customers. This charge includes all operating and maintenance costs and a regulated rate of return. This charge is approved by the Board.
- Storage: the cost to store natural gas.
Transportation, storage and delivery charges depend upon the amount of natural gas consumed.
Transportation, delivery, and storage charges may be itemized separately on your bill.
The Board approves these charges annually, however occasional adjustments occur when certain accounts are cleared.
Gas Supply Charge
This is the cost of the natural gas itself, charged based on the amount you use. The Board does not allow utilities to profit from the price at which they sell natural gas to their customers. Utilities charge customers the price they pay to obtain natural gas on their customer’s behalf. The price utilities pay for natural gas is determined in a competitive market.
The Board approves the price utilities charge for natural gas quarterly.
Gas Cost Adjustment
The Gas Cost Adjustment may be itemized separately on your bill. The adjustment is the difference between the actual and forecast price of natural gas. The Gas Supply Charge combined with the Gas Cost Adjustment equals the effective rate.
Page last updated 2016-12-19