Your Natural Gas Bill

A) Customer Charge

This reflects the fixed cost of services required to ensure natural gas is available when needed. Even though you may not consume any natural gas during a billing period, you will still be charged this cost. This charge covers such expenses as the installation and maintenance of the distribution system; street services and meters required to make services available; administrative services for billing, including meter reading, mailing of bills and the handling and collection of accounts. Since the equipment and services provided for in this charge are for the use of all customers, it is only fair that all customers should share in the costs. This rate is approved by the Ontario Energy Board.

B) Gas Delivery Charge

This charge is comprised of two separate components:

• The transportation charge to the Utility, which reflects the cost of transporting natural gas from the wellhead, usually in Western Canada, through interprovincial pipelines to Ontario. The bulk of this capacity is provided by TransCanada PipeLines Ltd., an interprovincial pipeline company regulated by the National Energy Board. The Transportation to the Utility charge which appears on a consumer’s natural gas bill reflects the utility’s costs approved by the National Energy Board.
• The cost of delivering the natural gas through the utility’s distribution system in Ontario to the customer’s home. This charge encompasses all operating and maintenance costs; depreciation of, and a return on invested capital and taxes. This charge is approved by the Ontario Energy Board. Both the Transportation and Delivery charges depend upon the amount of natural gas consumed.

Enbridge Gas Distribution Inc. combines the Transportation and Delivery charges on its bills to customers.

C) Gas Supply Charge (natural gas commodity)

The final charge appearing on your natural gas bill is the Gas Supply Charge. Although the Board approves the commodity cost of natural gas that may be included in rates, the Board does not set the price at which the utility purchases its natural gas supply. This price is determined in a competitive market and, if the Board determines that the utility’s purchasing strategy is appropriate, the natural gas costs are included in the rates charged to customers without markup. It is important to note that the Board does not allow the utility to profit on its natural gas purchase so utilities have no profit incentive to increase the cost of natural gas to their customers. The utility charges its customers the price it pays to obtain natural gas on behalf of their customers.

If you purchase natural gas from a licensed gas marketer, the name and phone number of the marketer will be shown separately on your natural gas bill.