| Home | For Consumers | Your Energy Options |    |
Your Options for Buying Natural Gas
- Option 1. Buying From Your Natural Gas Utility
- Option 2. Buying From a Natural Gas Marketer
- How Do I Choose?
Consumers have been able to choose their natural gas supplier since 1985 when the federal government deregulated the natural gas industry. Understanding the choices available can help you, the consumer, make an informed decision.
Along with most consumers in Ontario, you receive natural gas from the distribution utility in your area. It charges you for delivering natural gas to your residence or business and for other costs related to operating and maintaining the system.
While natural gas will always be delivered to you by the natural gas utility, you have the option of buying the natural gas you consume in one of two ways:
Option 1. Buying From Your Natural Gas Utility
Utility natural gas rates are approved by the OEB and can change every three months to reflect a forecast of market prices. The market price of natural gas fluctuates depending on supply and demand. Your utility does not earn a profit on the natural gas it purchases for you. You pay the cost of the natural gas the utility buys in the market on your behalf.
Option 2. Buying From a Natural Gas Marketer
As a natural gas consumer in Ontario, you don't have to purchase your natural gas supply from your local natural gas utility. While your natural gas utility will always deliver natural gas to your household because it operates and maintains the natural gas system, you can choose to purchase your natural gas from a natural gas marketer.
There are two key things you need to know about buying from a natural gas marketer:
-
The price you pay is set out in your contract with the natural gas marketer.
The price you pay per cubic meter (m3), as shown on the "Gas Supply" line of your natural gas bill, will be the price stated in the contract you sign. This price is determined by the natural gas marketer and is not regulated by the OEB. Usually the price is fixed for a number of years, but it may change during the term of the contract.
-
Your natural gas utility will continue to bill you for other items.
If you switch to a natural gas marketer, there are items on your bill that are still charged to you by the natural gas utility. The natural gas utility will continue to deliver your natural gas and charge amounts for the "Customer Charge" and "Delivery" lines on your bill. Your contract with the natural gas marketer only affects the "Gas Supply" line of your bill.
Returning to the local natural gas utility
If you sign with a natural gas marketer, you are making a commitment to purchase natural gas from the marketer for a certain period of time. If you terminate your contract early, you may have to pay a charge. That charge will be specified in your contract with the marketer. If you terminate your retail contract, you will automatically return to service with the local natural gas utility.
Questions to Ask When Considering a Contract with a Natural Gas Marketer
-
What is the price being offered?
-
How long is the term of the contract?
-
Do you offer contracts that differ in length?
-
Does the price stated in the contract differ depending on the length of the contract?
-
What other fees or charges would I be required to pay?
-
Would I be required to pay any charges if I leave before the contract ends?
-
When would the contract take effect?
- Learn more about natural gas marketers:
How Do I Choose?
The best choice will depend on your individual needs and preferences. Take the time to understand the different options and which will suit you best.
|
Options for Buying Natural Gas |
Key Features |
|---|---|
|
Your Natural Gas Utility |
|
|
Natural Gas Marketer contract |
|